Floor Ceiling In Economics

The floor functions as a lower limit while a ceiling signifies the upper limit.

Floor ceiling in economics.

Price ceiling has been found to be of great importance in the house rent market. This is usually done to protect buyers and suppliers or manage scarce resources during difficult economic times. A price ceiling keeps a price from rising above a certain level the ceiling while a price floor keeps a price from falling below a certain level the floor. This is done to make commodities affordable to the general public.

While they make staples affordable for consumers in. This section uses the demand and supply framework to analyze price ceilings. The next section discusses price floors. As a form of restriction a floor provides a limit for a particular activity or transaction to which it must adhere.