Unit 1 : Price ceiling and Price Floor

Price Ceiling - a legal maximum price meant to help buyers . It keeps the price for getting to high.

4 Consequence when Price Ceiling set too low  

  1. lower prices for some consumer 
  2. shortages 
  3. long lines for buyers 
  4. illegals sales above the equilibrium price 
Image result for economic price ceiling graph
Price floor - the legal minimum price to help seller ;it keeps the product price from falling .

4 Consequence when Price Floor set too high  

  1. higher product prices help few sellers
  2. surplus 
  3. higher taxes
  4. waste
Image result for economic price floor graph



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