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Market Equilibrium
Question
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Define Price Ceiling.

Answer

Price Ceiling refers to the maximum price of a commodity lower than equilibrium price at which the seller can legally sell their product.

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Some More Questions From Market Equilibrium Chapter

Explain the effects of 'maximum price ceiling' on the market of a good'? Use diagram.

Why is the equality between marginal cost and marginal revenue necessary for a firm to be in equilibrium? Is it sufficient to ensure equilibrium? Explain.

Market for a good is in equilibrium. The demand for the good 'increases'. Explain the chain of effects of this change.

Market of a commodity is in equilibrium. Demand for the commodity "increases." Explain the chain of effects of this change till the market again reaches equilibrium. Use diagram.

Giving reasons, state whether the following statements are true or false.
A monopolist can sell any quantity he likes at a price.

Giving reasons, state whether the following statements are true or false.
When equilibrium price of a good is less than its market price, there will be competition among the sellers. 

Market for a good is in equilibrium. There is simultaneous increase both in demand and supply of the good. Explain its effect on market price.

Market for a good is in equilibrium. There is simultaneous decrease both in demand and supply of the good. Explain its effect on market price.

Market for a good is in equilibrium. There is an 'increase' in demand for this good. Explain the chain of effects of this change. Use diagram. 

What is minimum price ceiling? Explain its implications.