Asked by Yolanda Lemmitt on Jul 08, 2024
Verified
Does a binding price ceiling result in a shortage or a surplus in the market?
Price Ceiling
a legally imposed maximum price on goods or services, above which they may not be sold to prevent market prices from rising too high.
- Become aware of the effects that price thresholds have on balancing market forces.
- Pinpoint the conditions that cause market imbalances, such as shortages or surpluses, through the implementation of price controls.
Verified Answer
RV
Robert Von Der BeckeJul 15, 2024
Final Answer :
A binding price ceiling will result in a shortage in the market.
Learning Objectives
- Become aware of the effects that price thresholds have on balancing market forces.
- Pinpoint the conditions that cause market imbalances, such as shortages or surpluses, through the implementation of price controls.