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Price Ceilings and Floors Assignment Help
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What do you mean by Price Floors?
Price ceilings mean a minimum price fixed by government to the people who belong to some particular class or some particular commodity. It means the exact price of the producer in that market is larger than the set price by government and this is why the demand of those goods increases while the producers are unable to fulfill that demand. A number of problems can be taken place for the producers and the company.
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What is price ceiling?
Price ceiling means the prices set by the government to its maximum level for certain particular services and goods. To purchase them, the customers need some assistance or support. However, it may be a great problem if this is set below the price of equilibrium. The market rate gets affected.
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What are the different factors related to Price Ceiling and floors?
- Effectiveness
- Effect on the market
- Minimum Wage
- Effect on Supply
- Increasing Demand
- General equilibrium
- Black market
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