Get reliable answers to your questions at Westonci.ca, where our knowledgeable community is always ready to help. Explore our Q&A platform to find in-depth answers from a wide range of experts in different fields. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
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 choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
