written by Daurie Augostine

-- written by Daurie Augostine



Thursday, February 4, 2010

Price Ceilings and Floors

Price floors and ceilings (i.e., government intervention in the free market!) can be set above, below, or at equilibrium, but to have any affect, price ceilings must be set at a price below equilibrium, and price floors must be set at a price above equilibrium.

Would you like to see some sample questions related to floors and ceilings?