loader  Loading... Please wait...

Question(s) / Instruction(s):

What effect do price ceilings and price floors have on the market?

 

1.       Price ceilings cause an increase in demand and a decrease in quantity supplied, which result in market shortages.

2.       Price floors cause an increase in demand and a decrease in quantity supplied, which result in market surpluses.

3.       Price ceilings cause an increase in demand and a decrease in quantity supplied, which result in market surpluses.

4.       Price floors cause an increase in demand and a decrease in quantity supplied, which result in market shortages.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$1.79

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494