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What is the difference between price …

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What is the difference between price ceiling and price floor?

Posted by Har Vishvas Sinha 7 years, 9 months ago

CBSE > Class 12 > Economics

1 answers

Yashashshri Sharma 7 years, 9 months ago

(Price ceiling refers to the maximum price fixed by the government that a producer can charge for a commodity. It leads to black marketing g and situation of excess demand) . (Price floor refers to the minimum price fixed by the government that a producer can charge from buyers for a commodity. This may lead to buffer stocks or support price. It is above the equilibrium price. And lead excess supply)

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