ECONOMICS
PRICE CEILINGS AND FLOORS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
price ceiling
|
|
|
price floor
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -Minimum wages is regarded as one of the commonly used examples of price floor. This article was all about the topic of Difference between Price Ceiling and Price Floor, which is an important topic for Commerce students.
Detailed explanation-2: -A price ceiling keeps a price from rising above a certain level-the “ceiling”. A price floor keeps a price from falling below a certain level-the “floor”. We can use the demand and supply framework to understand price ceilings.
Detailed explanation-3: -Minimum price ceiling refers to the least price that can be paid for any good or service. Also read: Difference Between Price Ceiling and Price Floor. Market Equilibrium.
Detailed explanation-4: -Price floors are sometimes called “price supports, ” because they support a price by preventing it from falling below a certain level.
Detailed explanation-5: -Rent control places a maximum limit on the rent. It is an example of a price ceiling.