Floor Ceiling In Economics

The floor functions as a lower limit while a ceiling signifies the upper limit.

Floor ceiling in economics.

As a form of restriction a floor provides a limit for a particular activity or transaction to which it must adhere. A price ceiling keeps a price from rising above a certain level the ceiling while a price floor keeps a price from falling below a certain level the floor. This section uses the demand and supply framework to analyze price ceilings. Price floors and price ceilings are government imposed minimums and maximums on the price of certain goods or services.

While they make staples affordable for consumers in. This is done to make commodities affordable to the general public. This is usually done to protect buyers and suppliers or manage scarce resources during difficult economic times. Price ceiling has been found to be of great importance in the house rent market.