price ceiling and price floor.docVIP

Chapter 2 Price Ceilings and Floors We have been considering the way markets work under normal conditions. Sometimes, markets are not allowed to work. This means that the price is not allowed to move to the equilibrium(均衡) level. Two such conditions are price ceilings and price floors. Let us begin with price ceilings. 1. Price Ceilings最高限价 One interference（干扰） with the market process is called a price ceiling. A price ceiling occurs when the price is artificially（人为地） held below the equilibrium price and is not allowed to rise. There are many examples of price cei