Asked by
Saniya Turner
on Nov 30, 2024
Verified
When a price ceiling which had been set below equilibrium price is removed,what happens next?
A) Quantity supplied rises
B) Quantity demanded rises
C) Supply rises
D) Demand rises
E) Price falls
Price Ceiling
A government-imposed limit on the price charged for a product, aiming to prevent prices from rising above a certain level.
Equilibrium Price
The price point at which the amount of products offered matches the amount of products consumers want to buy.
Quantity Supplied
The level of a commodity or service that sellers are eager and qualified to sell at a set price over a designated period.
- Learn the implications of erasing price floors and ceilings for the market environment.
Verified Answer
TG
Learning Objectives
- Learn the implications of erasing price floors and ceilings for the market environment.