What is maximum price calling Explain its implications CBSE Class 12 Economics 2016

The Eduladder is a community of students, teachers, and programmers just interested to make you pass any exams. So we solve previous year question papers for you.
See Our team
Wondering how we keep quality?
Got unsolved questions?

Ask Questions

CBSE-Class-12-Economics-2016-->View question

What is maximum price calling? Explain its implications. - CBSE Class 12 Economics 2016

Appeared in CBSE economics class 12, 2016, Delhi, Set 1 paper

Asked by:Aparna-Dasgupta

Taged users:

Be first to like this question

Be first to dislike this question
Talk about this  Delete  Like  Dislike

Price ceiling is the maximum price of a good which sellers can expect from buyers. This price is fixed by the government and is lower than the equilibrium market price of a good (OPe). Hence, the price ceiling leads to excess of demand and contract of supply.
Effects of price ceiling:
i. Price ceiling enables the availability of basic goods at reasonable prices to the poor.
This enables to increase the welfare of the people.
ii. When there is a fall in the price level, the demand for a good increases more than the
supply of the good. Hence, it creates an excess demand for the good.
iii. A consumer receives only a limited quantity of goods because the fixed quota system
is followed. So, the consumer would not be able to satisfy his/her needs.
iv. Goods which are available at ration shops are mostly of a low quality.
v. As the consumer demands are not satisfied, they are willing to pay a high price for satisfying their demand in the market. This results in black-marketing which reduces the actual availability of goods in the market.

Answerd By:milan-ransingh

Be first to like this answer

Be first to dislike this answer
Talk about this  Delete  Like  Dislike

Can you help us to add better answer here? Please see this

You may also like our videos

Below are some of the videos from our collection. We saw that students not only needed content but also videos. So, we decided to build a video platform for you also an algorithm which shows best videos suites to you related to the content you are browsing check out some videos which suit best for you.

Lets together make the web is a better place

We made eduladder by keeping the ideology of building a supermarket of all the educational material available under one roof. We are doing it with the help of individual contributors like you, interns and employees. So the resources you are looking for can be easily available and accessible also with the freedom of remix reuse and reshare our content under the terms of creative commons license with attribution required close.

You can also contribute to our vision of "Helping student to pass any exams" with these.
Answer a question: You can answer the questions not yet answered in eduladder.How to answer a question
Career: Work or do your internship with us.Work with us
Create a video: You can teach anything and everything each video should be less than five minutes should cover the idea less than five min.How to upload a video on eduladder
Donate: Ad revenue alone is not able to take care of our server cost consider donating at least a dollar Click here to donate.

Not the answer you're looking for? Browse other questions from this Question paper or ask your own question.

Ask your question?