Question

the highest vlalue buyers always obtain the good when there is a price floor. explain what is wrong with this statement.

Answer 1

The highest value buyers always obtain the good when there is a price ceiling in place.

Price ceiling is a governmental intervention in a market with an upper limit on the market price of a product. In any situation the market price cannot go beyond the price ceiling. Value buyers put on the product is their willingness to pay for that product. As there is a price ceiling in place some buyers (highest value buyers) would be willing to pay more than the market price for the product but they get it at a low price.