Get the answers you need at Westonci.ca, where our expert community is always ready to help with accurate information. Discover a wealth of knowledge from professionals across various disciplines on our user-friendly Q&A platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
A price ceiling (below the equilibrium price) increases demand and decreases supply. This is why price caps create shortages.
The price ceiling prevents the price from rising above a certain level. When the price cap is set below the equilibrium price, the quantity demanded exceeds the quantity supplied, resulting in excess demand or shortage.
We are introducing price caps for people who need products such as home, prescription drugs, and auto insurance. However, when the market price does not reach the equilibrium level, the quantity demanded exceeds the quantity supplied, resulting in a shortage of supply.
Learn more about demand here:https://brainly.com/question/1245771
#SPJ4
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
