Floor And Ceiling Revenue

The limits have been based on artc forecasted expenditures for 2008 09 as submitted to the accc as part of artc s application.

Floor and ceiling revenue.

The domestic demand function is given by q 10 2 x p the domestic supply function is q 2 x p 2. The maximum level permissible in a financial transaction. Governments will usually impose price ceilings when they believe that the equilibrium price in the market is too high and undesirable e g. Understanding the different methods businesses use to set budget ceilings will help you maintain flexibility in your spending without going into unmanageable.

Price floor is typically proposed to ensure good income of people involved in farming agriculture and low skilled jobs. They are usually put in place to protect vulnerable buyers or in industries where there are few suppliers. Floor and ceiling revenue limits are defined in detail in the access undertaking. A budget ceiling sometimes incorrectly referred to as a debt ceiling is a cap on business spending based on one or more formulas or limits set by a business.

Learn vocabulary terms and more with flashcards games and other study tools. Price ceilings impose a maximum price on certain goods and services. Price ceiling as well as price floor are both intended to protect certain groups and these protection is only possible at the price of others. It must be set below the equilibrium price to have any effect.

Start studying unit 4 elasticity price floors and price ceilings. 2008 09 floor and ceiling revenue limits provided should be considered as indicative only. Price floor and ceiling tax subsidy consider the market for butter in saudi arabia. Price ceiling maximum price the highest possible price that producers are allowed to charge consumers for the good service produced provided set by the government.

A good example of this is the oil industry where buyers can be victimized by price manipulation.