ECONOMICS
PRICE CEILINGS AND FLOORS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Target price
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Surplus
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Rationing
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Economic model
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Detailed explanation-1: -economic model-simplified version of a complex concept or behavior expressed in the form of a graph, figure, equation, or diagram.
Detailed explanation-2: -ANSWER: Economic models are designed to illustrate the important features of an economy. They are built from assumptions, and are most often composed of diagrams and equations. Like all useful models, economic models simplify reality in order to improve our understanding of it.
Detailed explanation-3: -Economic Models and Math Economists use models as the primary tool for explaining or making predictions about economic issues and problems. For example, an economist might try to explain what caused the Great Recession in 2008, or she might try to predict how a personal income tax cut would affect automobile purchases.
Detailed explanation-4: -What is one way to express economic theory? Mathematical Equations. Macroeconomic Data. Data Analysis.