PRICE CEILINGIULIA DAUS

WE WANT MORE ICE-CREAM! NO MORE MONEY!!!!!!!

OUR MARKET IS FREE AND THE GOVERNMENT SHOULD UNDERSTAND IT!!!!!!

Price Ceiling

Sometimes we want to buy a good but we do not have the money for it, so the Government will try to help us, the poor consumers. In order to do so, he will fix a price ceiling lower than the actual price of the product. Let me explain you.

A price ceiling is the maximum price for a product. So if I want to buy an ice-cream and it is 5$, after the Government fixed the price ceiling I can buy the same ice-cream with only 3$. Now any ice-cream is 3$ because this is the maximum. In this case people will be happy, but not the companies.

The companies will suffer, because their profit will be lower and lower and eventually they will decide to quite the market because is not profitable anymore. What happen if the companies decide to quite the market? Well... there will be no ice-cream because there will be none to produce the ice-cream.

So what it may looks like a favor for the customers is actually a disaster for everyone. The Government tried to help us, but it ended up harming the equilibrium in market.

SAY NO TO THE GOVERNMENT GETTING

INVOLVED!!!!

OUR MARKET HAS AN EQUILIBRIUM POINT!!!!!!!!!!!!