Price Ceiling of Sugar
A price
ceiling is set below equilibrium price
For
instance, government had set the price ceiling of sugar as RM2.84 per kg.
Sellers are prescribed that they can charge consumers at the price between
RM2.50 to RM2.84 per kg, but cannot charge above RM2.84 per kg.
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Price Floor of Wheat
A price
floor is a minimum allowable price set above the equilibrium price.
The price
of wheat must be set above price floor as government found that consumers able
to purchase wheat is less than producers offer it. If the price of wheat is set
at equilibrium price, producers will not gain profit and will lose. Thus,
government sets price floor is to help producers gain profit and protect them.
Written By
Jescy Seah Jec Xi
This information is clear, quite useful and good,congrate!u all done a good job!
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ReplyDeleteI am sorry, accidentally deleted the comment, anyway good work. Keep it going.
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ReplyDeleteWELL-DONE!!!!! quite USEFUL for me~~~~ keep FIGHTING~~
ReplyDeletei would like to know why government do so for sugar but not other food supplies?
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