Does Price Ceiling and Price Floor affect the Social Goals? Adalberto Briones Francisco Salazar.

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Does Price Ceiling and Price Floor affect the Social Goals? Adalberto Briones Francisco Salazar

YES!!! Price Ceiling and Price Floor affect the Social Goals. If you put them too high or too low it could affect the how much supplies there is compared to the demand.

Price Ceiling Definition-A maximum legal price that can be charged for a product Governments intend price ceilings to protect from consumers from conditions that could make necessary commodities unattainable

Minimum Wage Definition-The lowest legal wage that can be paid to most workers. The minimum wage for certain areas is $5.15/Hour Minimum wages varies within different jurisdictions. With this minimum wage there is 14 million people who offer their services. If the minimum wage would change to $4.00 then people that offer their services would change to 12 million. The higher the minimum wage the higher amount of people want to work

Price Floor Definition-Lowest legal price that can be paid for a good or service For a Price Floor to be effective, it must be higher than the equilibrium price

Nonrecourse Loan Definition-A loan that carries neither a penalty nor further obligation to repay if not paid back Nonrecourse loans are usually used to finance commercial real estate and similar projects with high capital expenditures, long loan periods, and uncertain revenue streams. It is also commonly used for stock loans and other securities- collateralized lending structures

Target Price A price floor for farm products The price at which a stockholder is willing to sell his/her stock. The price at which a seller projects that a buyer will buy a product. This article will attempt to expand this definition. Target price is more of a point of view, it depends on how much you want to sell your stock or buy a product for.

Deficiency Payment Definition-A government payment to compensate farmers for all or part of the difference between producer prices actually paid for a specific commodity and higher guaranteed target prices. The total payment is equal to the payment rate, multiplied by a farm’s eligible payment acreage and the program payment yield established for the particular farm.

WORKCITED ECONOMICS BOOK WIKIPEDIA erms/deficiency_payment.html

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