Msizi Msizi
  • 23-04-2016
  • Social Studies
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which market control measures between price floor and ceiling is applicable in labour market

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taskmasters
taskmasters taskmasters
  • 29-04-2016
Price floors and price ceilings are controlled by the government. This is to ensure that the prices provided by sellers are not too high or not too low. Price floors are used to protect the welfare of the producers (to avoid predatory pricing, etc.) while price ceilings are used to protect the welfare of the buyers. If not done so, a market failure might occur.  
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