Question

hello experts...what is price ceiling and price floor...

Answer 1

Price ceiling and price floor are two regulators when price government thinks that prices are unfair for producers. Price ceiling are maximum price set by government for certain goods and services when they think prices are too high and it is unfair to consumer. Price floor are minimum prices set by government for certain goods and services when they think prices are too low and it exploits the condition of producers for ex it sets minimum prices for farmers