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essay for price ceilings and price floor

essay for price ceilings and price floor VrEkm

Controversy sometimes surrounds the prices and quantities established by demand and supply, especially for products that are considered necessities. In some cases, discontent over prices turns into public pressure on politicians, who may then pass legislation to prevent a certain price from climbing “too high” or falling “too low”. Economists can predict how people and firms will react to laws that control price by using the demand and supply model—by the end of this article, you'll be able to make these predictions as well! Price ceilings Laws enacted by the government to regulate prices are called price controls. Price controls come in two flavors. A price ceiling keeps a price from rising above a certain level—the “ceiling”. A price floor keeps a price from falling below a certain level—the “floor”. We can use the demand and supply framework to understand price ceilings. In many markets for goods and services, demanders outnumber suppliers. Consumers, who are also potential voters, sometimes unite to convince the government to hold down a certain price. For example, when rents begin to rise rapidly in a city—perhaps due to rising incomes or a change in tastes—renters may press political leaders to pass rent control laws, a price ceiling that usually works by stating that rents can be raised by only a certain maximum percentage each year.

Controversy This phrase/word (depending on the context) can be potentially replaced with :in some instances
sometimes
 surrounds the You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
prices
 and quantities established by demand and supply, especially
 for products that are considered
 necessities. In This phrase/word is too simple and can be replaced with:a number of
some
 cases, discontent over You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
prices
 turns into public pressure on politicians, who may then pass legislation to This phrase/word (depending on the context) can be potentially replaced with :preclude
prevent
 a You use this word too often, consider replacing it withpositivesureconvinced
certain
You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 from climbing “too high” or falling “too low”.

Economists can predict how This phrase/word (depending on the context) can be potentially replaced with :individualsnationsociety
people
 and firms will react to laws that You use this word too often, consider replacing it withdisciplinerestrictionmanagementforcegovernmentrestraint
control
You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 by using the demand and supply model—by the This phrase/word (depending on the context) can be potentially replaced with :expiration
end
 of this article, you'll be able to This phrase/word (depending on the context) can be potentially replaced with :createconstructmanufactureproduce
make
 these predictions as well
!

Price ceilings

Laws enacted by the This phrase/word (depending on the context) can be potentially replaced with :national authoritypublic authority
government
 to regulate You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
prices
are called
You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
You use this word too often, consider replacing it withdisciplinerestrictionmanagementforcegovernmentrestraint
controls
. You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
Price
You use this word too often, consider replacing it withdisciplinerestrictionmanagementforcegovernmentrestraint
controls
This phrase/word (depending on the context) can be potentially replaced with :approacharrive
come
 in two flavors. A You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 ceiling This phrase/word (depending on the context) can be potentially replaced with :retains
keeps
 a You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 from rising above a You use this word too often, consider replacing it withpositivesureconvinced
certain
 level—the “ceiling”. A You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 floor This phrase/word (depending on the context) can be potentially replaced with :retains
keeps
 a You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 from falling below a You use this word too often, consider replacing it withpositivesureconvinced
certain
 level—the “floor”.

We can This phrase/word (depending on the context) can be potentially replaced with :exploit
use
 the demand and supply framework to understand You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 ceilings.

In This phrase/word is too simple and can be replaced with:a plethora ofa number ofnumerous
many
 markets for This phrase/word (depending on the context) can be potentially replaced with :productscommoditiesmerchandises
goods
 and services, demanders outnumber suppliers. Consumers, who are also
 potential voters, This phrase/word (depending on the context) can be potentially replaced with :in some instances
sometimes
 unite to convince the This phrase/word (depending on the context) can be potentially replaced with :national authoritypublic authority
government
 to hold down a You use this word too often, consider replacing it withpositivesureconvinced
certain
 price.

For example
, when rents This phrase/word (depending on the context) can be potentially replaced with :initiatecommence
begin
 to rise rapidly
 in a city—perhaps due to rising incomes or a This phrase/word (depending on the context) can be potentially replaced with :alteradjust
change
 in tastes—renters may press political leaders to pass rent You use this word too often, consider replacing it withdisciplinerestrictionmanagementforcegovernmentrestraint
control
 laws, a You use this word too often, consider replacing it withfarepayfeepremiumfigurevaluation
price
 ceiling that usually
 works by stating that rents can be raised
 by This phrase/word (depending on the context) can be potentially replaced with :exclusively
only
 a You use this word too often, consider replacing it withpositivesureconvinced
certain
 maximum percentage each year. 