which statements correctly explain price floors and price ceilings? choose four answers.\nineffective price…
which statements correctly explain price floors and price ceilings? choose four answers.\nineffective price floors tend to be too high.\nineffective price ceilings tend to be too low.\nprice floors help producers by raising prices.\nprice ceilings help consumers by lowering prices.\neffective price floors are set above equilibrium.\neffective price ceilings are set below equilibrium.
Answer
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.
Brief Explanations:
Price floors are minimum - prices. Above - equilibrium floors benefit producers. Price ceilings are maximum - prices. Below - equilibrium ceilings benefit consumers. Ineffective floors are below equilibrium and ineffective ceilings are above equilibrium, so the first two statements are incorrect.