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Burka [1]
3 years ago
14

Why is the price floor above the equilibrium point and the price ceiling below the equilibrium point? Please explain as well!

Business
1 answer:
artcher [175]3 years ago
3 0

Answer:

THE GIVEN STATEMENT IS WRONG.

The prices and the quantities of the products are usually set up by considering demand and supply. Sometimes, people may not agree with the price of a certain thing. Due to these reason, the government may set a maximum and minimum price limits on a product so it always remains in a certain range.

The upper limit is Price Ceiling. When a Price Ceiling is set below the equilibrium point, the demand will exceed the supply and shortages will occur.

The lower limit is Price Floor. When a price floor is set above the equilibrium point, the supply will exceed the demand, resulting in surplus quantity of a product

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Kalen is a seventeen-year-old minor who has just graduated from high school. He is attending a university two hundred miles from
aleksandrvk [35]

Answer and Explanation:

According to the scenario, the explanation of the given situation are as follow:-

1. Ability of Contract : According to the law except of some contract a minor can enter into any contract. Mr. kalen is a seventeen year old minor and he can entered the rent contract because it is not banned by the government for the minor.  

2. This is a voidable contract because Mr. Kalen is a minor and he not legally capable to entering in agreement. In voidable contract one party has a right to discontinue the contract it is depends on him that he want to void it or not. If he wants to void it he cannot be bound to go further with this contract. If a minor wants he can rightfully dis-affirm any contract in which he enters.

According to the analysis, under this circumstance, Mr. kalen is not bound to the contract because he is still minor and he shows his disaffirmance of contract by returning the key to landlord. So he is not liable for the balance of the payments due under the lease.    

5 0
3 years ago
when looking at a graph of aggregate demand, which of the following is correct? a. there are nominal variables on both the verti
joja [24]

The total quantity of demand for all finished products and services generated in an economy is measured as aggregate demand.  Hence option C is correct.

<h3>What is aggregate demand ? </h3>

The total amount of money spent on those goods and services at a particular price level and time is known as aggregate demand.

A macroeconomic concept known as "aggregate demand" refers to the total demand for products and services during a specific time period at any given price level.

Since the two indicators are calculated in the same way, aggregate demand is equal to GDP over the long run. Aggregate demand is the desire or demand for those products, whereas GDP is the total amount of goods and services produced in an economy.

Learn more about aggregate demand here

brainly.com/question/29670380

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6 0
2 years ago
The first budget customarily prepared as part of an entity's master budget is the _____ budget.
Fantom [35]

The first budget customarily prepared as part of an entity's master budget is the sales budget.

A sales budget is a economic plan that estimates a company's total revenue in a specific term. It focuses on two matters—the number of products sold and the price at which they're sold—to expect how the company will perform. The motive of sales budget is to acquire the objectives of the income department. It also acts as a planning tool. It enables a firm to set standards and try to achieve them. it's also an device of coordination between special departments in an organization like income, finance, production and advertising.The company's inner strengths or weaknesses, have an impact on its income budget. It includes elements like plant's production potential, advertising channel, promotion and commercial, sales volume and revenue, and so on

The enterprise's internal strengths or weaknesses, affect its sales budget. It includes factors like plant's production potential, marketing channel, promotion and advertisement, income volume and sales, and so on.

Learn more about Sales budget here:-

brainly.com/question/24196533

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4 0
2 years ago
Tammy is talented at craft but lacks the cash flow management skills required to run a business. She opens a store, Tammy's Craf
Zolol [24]

Answer:

who the hell keeps helping novice businesses people open up? - a business major - yeah the last two were too.

Explanation:

Summary? Left over cash?

5 0
3 years ago
4. What would you expect to happen to the spread between yields on commercial paper ant Treasury bills if the economy were to en
hram777 [196]

Answer: I will expect the spread between the yields to WIDEN

Explanation: The spread between the yield on Treasury bills and commercial paper will widen if the economy were to enter a steep economy.

A downward slope in the economy increases credit risk. It leads to a situation whereby Investors demand a greater premium on debt securities which are subject to default risk.

6 0
3 years ago
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