Price ceiling on toasters
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The question asked was suppose that the government imposes a price ceiling on toasters. In particular, suppose that it decrees that a toaster cannot sell for more than $14.00. Would the quantity supplied equal the quantity demanded? What sorts of devices may come into being to allocate the available supply of toasters to consumers? What problems would the government encounter in keeping the price at $14.00. What social purposes, if any, might such a price ceiling serve?
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The quantity supplied may not be equal to the quantity demand.
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The quantity supplied may not be equal to the quantity demand as this is not the equilibrium price level but a level fixed by the government. Devices such as ...
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