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If a government price control was set a price of $2. Which kind of price control would it be? price ceiling price floor no price control can exist below the equilibrium

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 9QP

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Question

If a government price control was set a price of $2. Which kind of price control would it be?

price ceiling

price floor

no price control can exist below the equilibrium

Definition Video Definition Lowest legal price that can be paid in a market for goods and services, labor, or financial capital. A price floor protects a price from falling below a stipulated level. Video

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A price ceiling is happening when the cost charged is more or less than the equilibrium price determined by market influences.

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