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Markets with a ceiling price and floor price?

In: Economics [Edit categories]

Answer:

An example of a ceiling would be rent controlled apartments.
A floor would be minimum wage.

First answer by ID1212769013. Last edit by ID1212769013. Question popularity: 4 [recommend question].

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What is a price ceiling and a price floor?
Price ceiling- a legal maximum price that may be changed for a particular good or service. Price floor- a legal minimum price below which a good or service may not be sold.
Why price ceiling and price floor is binding?
A price ceiling is binding when it is below the equilibrium price. It is the legal maximum price, so the market wants to reach equilibrium (which is above that) but can't legally. If it were above...
How is a price floor different from a price ceiling?
Price floor is a minimum and price ceiling is a maximum.
How is price floor different from price ceiling?
A price floor is the minimum price set by the government where as a price ceiling is the maximum price sellers can charge for a good or service.
When are price ceilings and price floors binding?
A price ceiling is the legal maximum price at which a good can be sold, while a price floor is the legal minimum price at which a good can be sold. A price ceiling is only binding when the...