##### Homework question help

 Economics Tutor: None Selected Time limit: 1 Day

Give a time where the government applied a price ceiling and what was the purpose for it and what was the outcome over time? Would you recommend a price ceiling in that case?

Aug 13th, 2015

When: A price ceiling is a government-imposed to control prices or limit on how high a price is charged for a product. Governments intend price ceilings to protect consumers from conditions that could make necessary commodities unattainable.

Purpose: A price ceiling occurs when the government puts a legal limit on how high the price of a product can be. This is done to make commodities affordable to the general public.

Recommendation: I will recommend it because it cushions those who are not able to acquire commodities because of low income.

Aug 13th, 2015

I need an example

Aug 13th, 2015

Let's takes take an example of the house-rent market. lets say a price of \$5000 has been determined as the equilibrium price with the quantity at 20 homes. Now, the government determines a price ceiling of \$2000. At this rate there is a shortage (demand for 20 houses, but supply is for only 10 houses).

Aug 13th, 2015

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Aug 13th, 2015
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Aug 13th, 2015
Dec 4th, 2016
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