An L shaped indifference curve represents that two goods are perfect complements of each other. Also read: Consumer Equilibrium Indifference... View Article
The advantages of perfect competition are as follows: Knowledge is shared evenly between all the participating firms in the market. Due to no... View Article
Perfect competition is considered to be that condition where every company or firm in the market is selling identical products and the market... View Article
Following are the characteristics of perfect competition: Large numbers of buyers and sellers in the market. Free entry and exit of firms in... View Article
Economists often take the example of agricultural markets as the best example for studying perfect competition. The other examples of perfect... View Article
Perfect competition in economics refers to a situation where all the companies in the market are selling identical products and the market share... View Article
No, rent control is an example of a price ceiling. Also read: Difference Between Price Ceiling and Price Floor Market Equilibrium Learn... View Article
Setting a price ceiling below the market equilibrium price will result in shortages due to demand being more than supply, while when a price... View Article
Shortage is caused by a price ceiling that is set below the market equilibrium price. Also read: Difference Between Price Ceiling and Price... View Article
Minimum wage is considered as a price floor because it allows suppliers of service (labourers) to provide their services within a decided rate... View Article
The following are the negative impact of a price floor: If the price floor is set above the market equilibrium price, then supply surplus can... View Article
A price floor helps in setting a price and prevents it falling to a certain level. Also read: Difference Between Price Ceiling and Price... View Article
The following are the effects of price ceiling: Short term reduction in prices Shortage of goods or services in the long term Levying extra... View Article
The main purpose of the government behind implementing price ceilings is so that it can control the maximum price that can be charged by... View Article
Yes, rent control is considered to be a price ceiling example, since rents can be demanded by different owners differently, therefore there has... View Article
Price ceiling is applied on essential commodities like gas, food or medicines. It is applied when there is a sudden surge in the price of these... View Article
Maximum price ceiling refers to the maximum price set by the government for a good or service that can be charged by a seller. Also read:... View Article
The example of the price floor can be understood by the case of minimum wage laws or the minimum wages. This is based on the premise that for a... View Article
Price ceiling is good for a short period of time but is bad in the long run as it will result in extra charges, shortages or lower quality... View Article
