Answered: Due to the implication of price ceiling…

Due to the implication of price ceiling lead to the producer cannot increase the price. Who will benefit from it and what are the advantages.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 1QR

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Due to the implication of price ceiling lead to the producer cannot increase the price. Who will benefit from it and what are the advantages.

Video Definition Video Definition Government regulation setting a maximum price a business may charge for a given good or service. A price ceiling itself does not cause demand or supply to change. It is simply a mechanism used to set a price that can be legally charged in the market. Price ceilings are often implemented during times of crisis to avoid price gouging.

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