Introduction to Economics 1 Deneme Sınavı Sorusu #1263543
Which of the following is not true about "price"?
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The most well-known price ceiling policy is conducted by the rent controls in real life. |
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Price ceiling is a legal minimum on the price at which a good or a service can be sold. |
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Without the government intervention, the market equilibrium price and quantity |
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Imposing a price ceiling above the equilibrium price has no effect on the market outcome |
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The price floor, which is a price control mechanism, sets a legal minimum on the price of a good or service is applied |
Price ceiling is a legal maximum on the price at which a good can be sold. As indicated before, the most well-known price ceiling policy is conducted by the rent controls in real life. Without the government intervention, the market equilibrium price and quantity for rental places will be determined by the demand and supply. Assume that in a town, the unregulated rental market price is 1000 TL and with this price 1000 apartments are rented out. If the policymakers think that this market price is unfair and the fair rental price should be 750 TL and imposes this price for rental places, the market outcome will be altered.
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