How Is A Price Floor Different From A Price Ceiling. The opposite of a price ceiling is a price floor which sets a minimum purchase cost for a product or service. A price ceiling creates a shortage when the legal price is below the market equilibrium price but has no effect on the quantity supplied if the legal price is above the market equilibrium price.
A price ceiling is a maximum price that can be charged for a product or service. On the other hand the price ceiling is the maximum price beyond which a seller cant sell. A price ceiling creates a shortage when the legal price is below the market equilibrium price but has no effect on the quantity supplied if the legal price is above the market equilibrium price.
On the other hand the price ceiling is the maximum price beyond which a seller cant sell.
A price ceiling is the legal maximum price for a good or service while a price floor is the legal minimum price. A price ceiling is the legal maximum price for a good or service while a price floor is the legal minimum price. On the other hand the price ceiling is the maximum price beyond which a seller cant sell. A price ceilingwhich is below the equilibrium pricewill cause the quantity demanded to rise and the quantity supplied to fall.
