Question

Which statements correctly explain price floors and price ceilings? Choose four answers. Ineffective price floors tend to be too high. Ineffective price ceilings tend to be too low. Price floors help producers by raising prices. Price ceilings help consumers by lowering prices. Effective price floors are set above equilibrium. Effective price ceilings are set below equilibrium.

Answer 1

The statements that correctly explain price floors and price ceilings are;

• Price floors help producers by raising prices.
• Price ceilings help consumers by lowering prices.
• Effective price floors are set above equilibrium.
• Effective price ceilings are set below equilibrium.

• A price floor is a price that is start up or initiated by the government that is often above equilibrium price. It is known as a tax placed on consumers and act as a subsidy to producers.

• A price ceiling is a also known as a price that was set up by government that is below market equilibrium price.

Conclusively, we can say that the statements that correctly explain price floors and price ceilings are;

• Price floors help producers by raising prices.
• Price ceilings help consumers by lowering prices.
• Effective price floors are set above equilibrium.
• Effective price ceilings are set below equilibrium.

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Answer 2

Answer:

C,D,E,F EDGE 2022

Explanation:

Price floors help producers by raising prices.

Price ceilings help consumers by lowering prices.

Effective price floors are set above equilibrium.

Effective price ceilings are set below equilibrium.