why does government impose price celling and price floor on certain commodities . who are the beneficiary of both? please answer in 15 pages
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8
Answer:
Price controls come in two flavors. A price ceiling keeps a price from rising above a certain level (the “ceiling”), while a price floor keeps a price from falling below a given level (the “floor”). A government imposes price ceilings in order to keep the price of some necessary good or service affordable. Governments usually set up a price floor in order to ensure that the market price of a commodity does not fall below a level that would threaten the financial existence of producers of the commodity.
*A price floor is an established lower boundary on the price of a commodity in the market. Governments usually set up a price floor in order to ensure that the market price of a commodity does not fall below a level that would threaten the financial existence of producers of the commodity.
The buyers of the good or service subject to a price ceiling benefit from the ceiling, if they are still able to purchase the product.
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1
Answer:
Poor people or people below poverty line
Explanation:
Price Ceiling : A line fixed by government upper the market rate . Therefore poor sell their products at good value.
Price Floor : A line fixed by government below the market rate . Therefore poor buy products at least price .
By this poor will get a good and healthy life
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