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    Does a price ceiling change the equilibrium price?

    A price ceiling is just a legal restriction. Equilibrium is an economic condition. People may or may not obey the price ceiling, so the actual price may be at or above the price ceiling, but the price ceiling does not change the equilibrium price.

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Questions & Answers

explain what will happen to producer of green coconut now that we have to lockdown in the kingdom of tonga
Tuha Reply
the demand for coconut will decrease and supply increases which result in the decrease in the price of coconut and the coconut will be more elastic
tonga is producing more long run economic good explain the meaning of the statement and its implication on the tonga economy
Tuha Reply
Demand is the various quantities of goods and services that consumer(s)are willing and able to purchase at a price within a time
Muhammad Reply
What is demand
Mc Reply
Distinguish between cross elasticity and income elasticity of demand
Ruth Reply
Distinguish between cross elasticity and income elasticity of demand
if change in the demand of the commodity with respect to change in demand of the substitute or other product called cross elasticity
and. if change in the demand of the commodity due to change in the income . called income elasticity
Cross elasticity of demand is the degree of responsiveness of quantity demanded of a commodity to a small change in price of another commodity whiles Income elasticity of demand is the degree of responsiveness of quantity demanded of a commodity to a small change in income of it's consumers
but these are book wordings
income elasticity of demand shows how quantity demanded changes due to changes in income on the other hand cross elasticity refers to how the quantity demanded of a particular good alers given a change in the price of another good.
what is the competitive demand
Adiza Reply
Competitive demand are those commodity dat are competitive in nature e.g the close up and my my toothpaste the increase in price of close up may bring abt decrease in demand of it and it will serve as increase in purchase of my my
With regards to coal shortage and manicipal debts the what form of intervention do you think Eskom can put in place.
kedibone Reply
economic growth of Bhutan
Nima Reply
please, explain all the mathematics terms used in economics
The answer is: little more than high school algebra and graphs.
what is the effect of inflation in GDP
ahmed Reply
Not only real GDP but also nominal GDP will decrease
yep. Inflation has an influence not only GDP but interest rate also.
The pound weakens so imports become more expensive and exports lose value - lower GDP.
Inflation really affect all source of product dat entails buying and selling and not only GDP
why do inflation effect economic
Chelsea Reply
Because inflation is all abt increase in price and commodity so the purchasing power of people will reduce
explain in detail what is economic what is scarcity what is alternate uses
Ejiro Reply
What is law of demand
economic as a science refers to study of human resource
Law of demand- With all the factors remaining same if price increases of a commodity, the quantity of demand of that commodity decreases and vice versa
Thanks dey sunita
What is law of supply
The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
what are the factors that affect demand
Elly Reply
what are the factors that affect demand of a good
what are the factors that affect demand of a good
what are the factors that affect demand of a commodity
1. the price of the product 2. the price of other products 3. consumers income 4. expectation of future changes in price 5. taste and preference etc.
Change in price
1. price related of commodities 2. consumers income 3. the condition or season of the commodities
decrease in demand of substitute increase in demand of constituent change in quantity and other environmental factors
Nd consumer's income
what course scarcity
Bashari Reply
Scarcity is the limited availability of a commodity, which may be in demand in the market or by the commons. Scarcity also includes an individual's lack of resources to buy commodities. The opposite of scarcity is abundance.
When there is no excess of resources in the community the will be scarcity
Reasons that explain why the division of labor increases an economy's level of production
Chukwuka Reply
Please I don't understand the meaning and the concept of economics as a science
Ophelia Reply
economics as a science refers to the study of human behavior. how they make decisions etc
economics is science because it uses scientific methods in analysing societal problems.. observation experimentation and conclusion inherently are used to analyse. however it is not pure science but social science because it studies human and it's environs

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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