Price Ceiling for Legal Prices
Not what you're looking for?
Price ceiling sets a maximum legal price that a seller may charge, typically placed below equilibrium. What do you think of a government placing a price ceiling the next time gasoline prices rise above $4.00 a gallon?
Purchase this Solution
Solution Summary
The expert examines price ceilings for legal prices.
Solution Preview
A price ceiling is an artificial cap on the price at some given point below the equilibrium price. This means that if markets were free to adjust to supply and demand, the price would increase to the equilibrium level.
When a price ceiling is implemented, the quantity demanded is higher than the quantity supplied at ...
Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.