A price fixed above equilibrium that change the incentives that both buyers and sellers face is called price

Question

Demarcus Baird

Mathematics

2 September, 11:59

A price fixed above equilibrium that change the incentives that both buyers and sellers face is called price

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Jamar Rangel · Answer 1

floor

Step-by-step explanation:

price floor is a situation when the price changed is greater or leave than the equilibrium price determined by the force of demand and supply. For a price floor to be effective, the minimum price has to be higher than the equilibrium price. It must be set above the equilibrium price. The opposite of price floor is price ceiling.