The Concept Of Price Ceiling Assessment Answer
Answer:
Price ceiling and price floors are some of the policies applied by government of a given state to c
ontrol prices offered on goods and services. In economics, a minimum wage set is considered as a price floor which is the lowest price to be offered by the employers to their employees. The price floor is always created by the government to enable provision of good and quality services. However setting high minimum wage has got consequences.
Impact of raising a price floor on the price of labor
The minimum wage policy is always applied above the equilibrium. When minimum wage is applied in to the labor market, labor demand and supply change. According to economic theory, high minimum wage leads to workforce surplus since many qualified people are willing and able to provide services but are no able to get jobs (Dixit, 2012).). Those who are already employed retain their jobs since employers always create ways to deal with price floors with majority avoiding laying off technique since acquiring new employees tend to expensive. This model is quite expensive for investors thus no creation of new jobs through investments and finally results into unemployment.
b)Rent ceiling
Rent ceiling is a model used by the government to control rental prices so that low income earners can find places to reside. It places maximum rent charges to be laid on tenants by the landlords. Rental just like minimum wage bill leads to apartment shortages as the available rentals cannot support the tenants who are able to afford the rentals (Krueger, 2014)). Rent ceiling enables low income earners with the opportunity to acquire apartments. Moreover, rent ceiling hinders new investments in housing sector leading to surplus of tenants as well as poor housing system.
Reference
Dixit, A. (2012). Irreversible investment with price ceilings. Journal of Political Economy, 541-557.
Krueger, A. O. (2014). The political economy of the rent-seeking society. The American economic review, 64(3), 291-303.
Buy The Concept Of Price Ceiling Assessment Answers Online
Talk to our expert to get the help with The Concept Of Price Ceiling Assessment Answers from Assignment Hippo Experts to complete your assessment on time and boost your grades now
The main aim/motive of the finance assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignment help Australia. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at www.assignmenthippo.com are so much skilled, capable, talented, and experienced in their field and use our best and free Citation Generator and cite your writing assignments, so, for this, they can effectively write the best economics assignment help services.
Get Online Support for The Concept Of Price Ceiling Assessment Answer Assignment Help Online
Want to order fresh copy of the Sample The Concept Of Price Ceiling Assessment Answers? online or do you need the old solutions for Sample The Concept Of Price Ceiling Assessment Answer, contact our customer support or talk to us to get the answers of it.
Assignment Help Australia
Want to order fresh copy of the The Concept Of Price Ceiling Assessment Answers? online or do you need the old solutions for Sample The Concept Of Price Ceiling Assessment Answer, contact our customer support or talk to us to get the answers of it.
