Increases the amount of a product that consumers buy, Ask an Expert

Economics

A student makes the following argument:

A price floor reduces the amount of a product that consumers buy because it keeps the price above the competitive market equilibrium. A price ceiling, on the other hand, increases the amount of a product that consumers buy because it keeps the price below the competitive market equilibrium. Do you agree with the student's reasoning? Use demand and supply graph to illustrate your answer

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9274261

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