Search results
Results From The WOW.Com Content Network
Another example is a paper by Sen et al. that found that gasoline prices were higher in states that instituted price ceilings. [18] Another example is the Supreme Court of Pakistan decision regarding fixing a ceiling price for sugar at 45 Pakistani rupees per kilogram. Sugar disappeared from the market because of a cartel of sugar producers and ...
A related government intervention to price floor, which is also a price control, is the price ceiling; it sets the maximum price that can legally be charged for a good or service, with a common example being rent control. A price ceiling is a price control, or limit, on how high a price is charged for a product, commodity, or service.
When the price drops close to the floor price (after a new rich vein of silver is found, for example), the scheme operator (usually government) will start buying up the stock, ensuring that the price does not fall further. Likewise, when the price rises close to the ceiling, the operator depresses the price by selling off its holdings.
Because of these shortages and the overall national economic crisis, the federal government called for emergency price control on consumer goods and rent control in 1942. [25] However, not all states decided to implement these rent control laws. During World War II roughly 80% of rental housing was put under rent control starting in 1941. [26]
A price floor is a government- or group-imposed price control or limit on how low a price can be charged for a product, [1] good, commodity, or service. It is one type of price support; other types include supply regulation and guarantee government purchase price. A price floor must be higher than the equilibrium price in order to be effective ...
Main Menu. News. News
President Calderón opted for using price ceilings for tortillas that protect local producers of corn. This price control came in the form of a "Tortilla Price Stabilization Pact" between the government and many of the main tortilla producing companies, including Grupo Maseca and Bimbo, to put a price ceiling at MXN 8.50 per kilogram of tortilla. [6]
Resale price maintenance (RPM) or, occasionally, retail price maintenance is the practice whereby a manufacturer and its distributors agree that the distributors will sell the manufacturer's product at certain prices (resale price maintenance), at or above a price floor (minimum resale price maintenance) or at or below a price ceiling (maximum resale price maintenance).