Question

shifting demand into other time periods can be accomplished through group of answer choices all of these answer choices are correct. a.incentives b. sales promotions c. advertising d. All of these answer choises are correct

Answer 1

Price floors and price ceilings are market interventions that set minimum and maximum prices respectively, but neither directly shift supply or demand. A price floor can lead to a surplus, while a price ceiling can lead to a shortage.

Step-by-step explanation:

When considering the effects of a price floor and a price ceiling on the market, it's important to understand that these mechanisms are types of government interventions designed to maintain market stability and protect consumers and producers. A price floor is set above the equilibrium price to prevent prices from going too low. This can help ensure that producers can cover the costs of production and maintain a reasonable standard of living. However, a price floor does not shift supply or demand; instead, it can lead to a surplus if set too high. Conversely, a price ceiling is a limit placed on how high a price can be charged for a product or service, typically set below the equilibrium price to keep goods affordable. Similar to price floors, price ceilings do not shift supply or demand; rather, they can result in a shortage if the ceiling is set too low.