Price Ceiling and Price Floor
Economics ⇒ Markets and Price Determination
Price Ceiling and Price Floor starts at 12 and continues till grade 12.
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See sample questions for grade 12
A price ceiling set above the equilibrium price will have what effect?
Describe how a price floor can lead to government intervention in the form of buffer stocks.
Describe the effect of a price floor on the supply and demand of a commodity.
Explain how a price floor can distort market equilibrium.
Explain the difference between price ceiling and price floor.
Explain the impact of a price ceiling on the market for essential medicines.
Explain the term 'black market' in the context of price ceilings.
Explain the term 'rationing' in the context of price ceilings.
Explain why a price floor may lead to wastage of resources.
If a price ceiling is set at ₹80 per unit and the equilibrium price is ₹100 per unit, what is the likely result?
If the equilibrium price of rice is ₹50 per kg and the government sets a price floor at ₹60 per kg, calculate the likely market outcome.
If the equilibrium price of sugar is ₹40 per kg and the government imposes a price ceiling of ₹35 per kg, what will be the likely outcome?
If the government sets a price ceiling on onions at ₹30 per kg, but the equilibrium price is ₹40 per kg, what is the likely market outcome?
If the government sets a price floor on wheat at ₹25 per kg, but the equilibrium price is ₹20 per kg, what is likely to happen in the wheat market?
State one disadvantage of imposing a price ceiling.
State one example of a price floor in India.
State one reason why governments impose price ceilings.
What is a price ceiling?
What is the likely effect on consumer surplus when a price ceiling is imposed below equilibrium price?
