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4 years ago

Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages?

Business

1 answer:

Degger [83]4 years ago

7 0

Answer:

Shortage: there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied.

Your pretty much short in supply and cant fulfill the demand

While surplus

When a price floor is set above the equilibrium price, quantity supplied will exceed quantity demanded, and excess supply or surpluses will result.

Theirs a a large amount of supply due to the pricing most likely beign high

Explanation:

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3 years ago

What are the advantages and disadvantages of common stocks

andrey2020 [161]

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3 years ago

Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium? it needs to be increased. it ne

Juli2301 [7.4K]

The rate suggested via the means of p2 on the graph to gain equilibrium needs to be decreased.

<h3>What is equilibrium?</h3>

Equilibrium is the nation wherein the marketplace delivers and calls for stability from each other, and as a result, costs grow to be stable.

Generally, an over-deliver of products or offerings causes costs to head down, which leads to better call for—while an under-deliver or scarcity of products causes costs to head up, resulting in much less call for.

The balancing impact of delivery and call for outcomes in a nation of equilibrium. The equilibrium rate is the rate at which the delivery of products fits the call for.

When a primary index studies a length of consolidation or sideways momentum, it could be stated that the forces of delivery and call for are tremendously the same and the marketplace is in a state of equilibrium.

So, from the above statement, it is clear that, it needs to be decreased, is the right answer.

Learn more about Equilibrium, refer to:

brainly.com/question/13458865

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2 years ago

____ involves completely disclosing to participants the goals and procedures involved in the study and obtaining their agreement

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4 years ago

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Anna11 [10]

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3 years ago

Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages? ​

Why does a price floor lead to surpluses? Why does a price ceiling lead to shortages?