ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price Ceilings
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A low price for the good
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A high price for that good
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Demand is really low
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Detailed explanation-1: -The incentive function of the price mechanism producers to supply more because they provide the possibility or more revenue and increased profits. The incentive function of a price rise is associated with an extension of supply along the existing supply curve.
Detailed explanation-2: -Lower prices for goods or services provide incentives for buyers to purchase more of that good or service and for producers to make or sell less of it. An increase in the price of a good or service encourages people to look for substitutes, causing the quantity demanded to decrease, and vice versa.
Detailed explanation-3: -Sales and discounts are price incentives that motivate consumers to buy more goods for less money. High prices are also incentives for new suppliers or existing ones to produce more of an expensive product to exchange for more profits.
Detailed explanation-4: -Tax Incentives. Financial Incentives. Subsidies. Tax rebates. Negative incentives. 12-Oct-2022