3.4 Price Ceilings and Price Floors Flashcards
1
Q
Why are price ceilings enacted?
A
In an attempt to keep prices low for those who need the product
2
Q
What is another term for Price Floors?
A
Price Supporters
3
Q
What is the most common way price support works?
A
The government enters the market and buys up the product adding to the demand ti keep prices higher than usual.
4
Q
What are some cons of price ceilings?
A
- Quality Deteriorates
- A shortage can result
