In April 2007, there were shortages of Ghacem cement in the country which led to a rise in the price of Ghacem cement. The government then intended to put a price ceiling on cement in the country to minimize the loss to users of cement for construction purposes. Some people were of the view that “the fixing of a price ceiling for cement in the country will not have any effect”. Briefly discuss with the aid of an appropriate diagram the effect of the imposition of price ceiling on Ghacem cement market.
In April 2007, there were shortages of Ghacem cement in the country which led to a rise in the price of Ghacem cement. The government then intended to put a price ceiling on cement in the country to minimize the loss to users of cement for construction purposes. Some people were of the view that “the fixing of a price ceiling for cement in the country will not have any effect”. Briefly discuss with the aid of an appropriate diagram the effect of the imposition of price ceiling on Ghacem cement market.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In April 2007, there were shortages of Ghacem cement in the country which led to a rise
in the
cement in the country to minimize the loss to users of cement for construction purposes.
Some people were of the view that “the fixing of a price ceiling for cement in the country
will not have any effect”. Briefly discuss with the aid of an appropriate diagram the effect
of the imposition of price ceiling on Ghacem cement market.
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