Assignment Problem: Hello, how can I respond to the following?
For scenario one a price ceiling would only help the buyer and the child in this scenario, this is because a price ceiling seat by the government limits the height or amount in which an item can be priced at. Price ceilings are important for all goods especially ones set by the government as this makes medicine attainable for the majority and prevents private price gauging by different companies especially if it the public doesn't have many other options. Right away this may disrupt the consumers or buyers but companies would make more product or medicine which raises production and lowers costs. Price ceiling's help to keep the price low and more affordable. A price ceiling imposed by the government will negatively impact the company but the increased production will lower overall cost of production for the company which over time will improve the company's margins and overall profit.