Question

What are the two groups that benefit from price ceiling?

What are the two groups that benefit from price floor?

Answer 1

The groups that benefit from the price ceiling are consumers and spenders. Say in the market for rent control the renters do not have to pay the higher price that is determined by the equity of demand and supply but they the maximum price fixed by the government (price ceiling) which is much lower than the equilibrium price.

The groups that benefit from the price ceiling are producers and sellers. Let say the market for agricultural products when the price of the agricultural product determined in the market is too less then the government intervenes and sets a minimum price that they get for their products which is much higher than the equilibrium price.

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