--%>

Effect of imposesing a maximum price by government

Describe what will happen while the government imposes a maximum price that is above the market equilibrium price. Why is this correct?
The maximum price will have no effect on the market. It is true because the price ceiling will only have an impact while the market equilibrium price is above it. Firms & consumers will or else not change their behaviour.

   Related Questions in Biology

  • Q : Germ layers present in the cnidarians

    Which germ layers present in the cnidarians? Which tissues of animal do they originate?

  • Q : Macro and micronutrients Explain the

    Explain the difference between macro and micronutrients?

  • Q : Grasslands of North America and of

    Describe the grasslands of North America and of South America?

  • Q : Etiological agent of amebiasis-typical

    Write down the etiological agent of the amebiasis? How it transmitted and also writes down the typical manifestations of disease?

  • Q : E-mail Communication - Organization

    Electronic mail involves sending messages via telecommunication links. If two computer terminals, however distant from each other, are connected on network, it is possible to send messages from one to the other. The message is typed on a computer screen at one end, and is conveyed to the other en

  • Q : Cultural Diversity for Companies -

    a) Offer language training to your employees. b) Encourage your employees to accept non-country work assignments. c) Provide transition counseling to employees and their families both before and after a non- home-country assignment. d) Provide training to help employees le

  • Q : Aquatic and flying mammals Are there

    Are there any aquatic and flying mammals? Answer: Cetaceans (whales and dolphins) and sirenians (dugongs and manatees) are aquatic mammals. Chiropterans (that is, ba

  • Q : Difference between advertisements and

    Difference between advertisements & sales: Advertisement refer to creating awareness regarding the product to the world.

  • Q : Type I and type II diabetes mellitus

    Specify some of the difference between type I diabetes mellitus and type II diabetes mellitus?

  • Q : Describe Quality management system or

    Describe QMS: In accordance with ISO 9001:2000 a quality management system will provide your organization along with a set of processes that make sure a common sense approach to the management of your organization.