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    price ceiling or a price floor

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    This solution shows graphically what happens to quantity sold when a price ceiling or a price floor is imposed. If price is fixed artificially above or below the natural equilibrium, will there be excess or not enough of a good?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:12 pm ad1c9bdddf
    https://brainmass.com/economics/supply-and-demand/shortage-surplus-price-floor-ceiling-50782

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    (See attached file for graphical display and further explanation)

    If a price floor is imposed in a market, ...

    Solution Summary

    This job exposes what happens to quantity sold when a price ceiling or a price floor is imposed.

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