As a group, are sellers better or worse off with the price ceiling compared to trade in a market with no price controls? That is, do they capture more or less gain with the ceiling?

Question

Mathematics

Raelynn Zuniga

11 January, 04:33

As a group, are sellers better or worse off with the price ceiling compared to trade in a market with no price controls? That is, do they capture more or less gain with the ceiling?

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Conrad Sharp · Answer 1

In analyzing the price ceiling in regards to the impact it has on sellers, it is clear that price controls may be detrimental in the gains attained by business owners when ceilings exist. This is due to the limitations placed and the ability of a single company to dominate the market.