which statements correctly explain price floors and price ceilings? choose four answers. ineffective price…

which statements correctly explain price floors and price ceilings? choose four answers. ineffective price floors tend to be too high. ineffective price ceilings tend to be too low. price floors help producers by raising prices. price ceilings help consumers by lowering prices. effective price floors are set above equilibrium. effective price ceilings are set below equilibrium.

which statements correctly explain price floors and price ceilings? choose four answers. ineffective price floors tend to be too high. ineffective price ceilings tend to be too low. price floors help producers by raising prices. price ceilings help consumers by lowering prices. effective price floors are set above equilibrium. effective price ceilings are set below equilibrium.

Answer

Brief Explanations:

  • Ineffective price floors are too low, not high, so the first statement is wrong.
  • Ineffective price - ceilings are too high, not low, so the second statement is wrong.
  • Price floors set a minimum price, which can raise prices for producers, helping them.
  • Price ceilings set a maximum price, which can lower prices for consumers, helping them.
  • Effective price floors are above the equilibrium price to have an impact.
  • Effective price ceilings are below the equilibrium price to have an impact.

Answer:

  • Price floors help producers by raising prices.
  • Price ceilings help consumers by lowering prices.
  • Effective price floors are set above equilibrium.
  • Effective price ceilings are set below equilibrium.