Asked by
Jared Lichtinger
on Nov 30, 2024
Verified
In the graph above,a government imposed price of $35 represents a price _____ and there is a _____.
A) floor,surplus
B) floor,shortage
C) ceiling,surplus
D) ceiling,shortage
Price Ceiling
A government-imposed limit on the price charged for a product or service, intended to prevent prices from becoming too high.
Surplus
An amount of something left over when requirements have been met; in economic terms, this can refer to excess supply over demand in a market, leading to lower prices.
Shortage
A condition where there's more market demand for a product or service than what is supplied.
- Understand the concepts of price ceilings and price floors in market economics.
- Identify the conditions under which surpluses and shortages occur in the market.
Verified Answer
DK
Learning Objectives
- Understand the concepts of price ceilings and price floors in market economics.
- Identify the conditions under which surpluses and shortages occur in the market.