Answer to Question #97987 in Economics of Enterprise for Vincent Gomez

Answer to Question #97987 in Economics of Enterprise for Vincent Gomez

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Question #97987

Give three examples of the price ceiling and discuss its effects.

Expert’s answer

Price ceiling is the maximum price for some goods that is established by the government in order to keep them affordable, for example gasoline, rents in some cities, or some necessity goods (bread, bottled water) during the natural disasters. If the price ceiling is lower than the equilibrium price, it creates shortage on the market

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