Sometimes the government does not allow price to be a rationing device. 1. Define the following terms:

Question:

Sometimes the government does not allow price to be a rationing device.
1. Define the following terms:
a. Price ceiling
b. Price floor
2. Describe the situations where price ceilings and price floors have no effects.
3. List the undesirable effects of price ceilings.
4. List the undesirable effects of price floors.