Chapter 6: Price Ceiling and Price Floor

price floor

_______________ helps the firms so they get income

shortage

a binding price ceiling creates

surplus

a binding price floor creates

price ceiling

a legal maximum on the price imposed by government at which a good can be sold

price floor

a legal minimum on the price at which a good can be sold

below the equilibrium price

for a price ceiling to be a binding constraint on the market, the government must set it.........

not binding

if price floor < P* it is

binding

if price floor is > P* it is

rent controls

price ceiling example

the buyer from higher prices

price ceiling protects who from what

minimum wage

price floor example

binding

what is the impact on market outcome called