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Who is the winner and who is the loser in Price Ceiling Situation in economics?

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  • Who is the winner and who is the loser in Price Ceiling Situation in economics?


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Answer #1 | 26/02 2017 10:17
Depends where the price ceiling is caped. Above equilibrium price , Producer who gets to produced will be better off. Consumer will be worst off. There will be excess supply if price is above equilibrium price. Therefore will only benefit the producer whose goods are sold. Below equilibrium price, Producer will be worse off. While Consumer who GETS to consumed the good will be better off. Reason if Price under equilibrium, there will be excess demand and not everyone will be able to consume the good. I.e there will be a queue. Hope this helps.
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