Price Control: They are some types of restrictions on the range of price in the market which are generally imposed by the government to protect the interest of consumers and producers. Price Floor: When the government limits the minimum price, which can be charged from consumers then it is referred as a price ceiling . It may be binding or non-binding. When the minimum price is above market equilibrium price then it is binding. If the maximum price is below the market equilibrium price, then it is non-binding. Demand Curve: The curve which shows how the quantity demanded changes due to change in the price. It is a negatively sloped curve. Supply Curve: The curve which shows how the quantity supplied changes due to change in the price. It is a positively sloped curve. Minimum Wage: It is one of the most popular price floors . It is the least wage that is must be provided to the workers.

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Chapter 4, Problem 12P

To determine

Concept Introduction:

Price Control: They are some types of restrictions on the range of price in the market which are generally imposed by the government to protect the interest of consumers and producers.

Price Floor: When the government limits the minimum price, which can be charged from consumers then it is referred as a price ceiling. It may be binding or non-binding. When the minimum price is above market equilibrium price then it is binding. If the maximum price is below the market equilibrium price, then it is non-binding.

Demand Curve: The curve which shows how the quantity demanded changes due to change in the price. It is a negatively sloped curve.

Supply Curve: The curve which shows how the quantity supplied changes due to change in the price. It is a positively sloped curve.

Minimum Wage: It is one of the most popular price floors. It is the least wage that is must be provided to the workers.

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