Demand is elastic for luxurious commodities due to an infrequent purchase of these commodities. When the prices of the commodity increase, the demand for the quantity will decrease because people will not be willing to spend more money on this product. At the same time, when the price of the...
Goodsaresoldillegallyatapriceabovethelegalceiling Figure1:APriceCeilingintheMarketforMapleSyrup 60,000 50,000 40,000 T E V R D S $4.00 3.00 2.00 PriceFloors Governmentimposedminimumamountbelowwhichpriceisnotpermittedtofall Pricefloorsforagriculturalgoodsarecommonlycalledpricesupportprograms ...