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Zarrin [17]
3 years ago
6

A price ceiling is binding when it is set

Business
2 answers:
Zielflug [23.3K]3 years ago
8 0
B.below the equilibrium price, causing a surplus
zloy xaker [14]3 years ago
3 0

Answer:

below equilibrium price, causing a shortage.

Explanation:

In market economies, the equilibrium price of goods and services is determined through the interaction between supply and demand. The price ceiling is a form of competitive market intervention in which the government sets a maximum price below the equilibrium price. Thus, producers tend to decrease their supply for the product as the profit perspective decreases. As a result, product shortages may occur. For example, if the equilibrium price of the sack of corn is $ 20 if the government sets a price ceiling of $ 15, corn growers can only sell it for $ 15. As a result, corn production and supply tend to decrease.

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This is the case of India, which has always have very strict traditional values, although younger generations are relaxing those values in recent years.

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Parul is a manager who is preparing to send a memo to members of her team. What will best help her evaluate the memo before she
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2 years ago
On January 1, Year 1. a company issues $100.000 of 8% bonds maturing in 10 years when the market rate of interest is 9%. The bon
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