Which of the following is an example of price gouging? New York hotels that doubled or tripled their prices in the aftermath of the September 11, 2001, attacks.
A price ceiling is a legal maximum on the price at which a good can be sold. Examples of price ceiling includes rent contorls, price controls on gasoline in the 1970s, and price ceilings on water during a drought.
Which of the following is an example for group price discrimination? group price discrimination on the part of airlines would no longer be profit maximizing. business travelers are less flexible in their travel plans than vacationers are. Why doesnʹt a firm price discriminate based on income levels?
The result of the price floor is that the quantity supplied Qs exceeds the quantity demanded Qd. There is excess supply, also called a surplus.
Perhaps the best-known example of a price floor is the minimum wage, which is based on the view that someone working full time should be able to afford a basic standard of living. The federal minimum wage in 2016 was $7.25 per hour, although some states and localities have a higher minimum wage.
An example of a price floor is minimum wage laws, where the government sets out the minimum hourly rate that can be paid for labour. In this case, the wage is the price of labour, and employees are the suppliers of labor and the company is the consumer of employees' labour.
d. Price discrimination is the business practice of selling the same good at different prices to different customers. Charging adults and children different prices for the same movie is an example of price discrimination.
Answer and Explanation: The correct answer is D. Charging the same price to everyone for a good or service is not price discrimination.
Answer and Explanation: Price discrimination is the practice of offering the same product to different customers at different prices.
Price Floor Definition. The minimum legally allowable price for a good or service, set by the government. Sellers cannot charge a price lower than the price floor. Reasons Governments Impose Price Floors.
Definition: Price floor is a situation when the price charged is more than or less than the equilibrium price determined by market forces of demand and supply. By observation, it has been found that lower price floors are ineffective. Price floor has been found to be of great importance in the labour-wage market.
The most important example of a price floor is the minimum wage. A price ceiling is a maximum price that can be charged for a product or service. Rent control imposes a maximum price on apartments in many U.S. cities. A price ceiling that is larger than the equilibrium price has no effect.