A maximum (ceiling) price control is set in the interests of the __________ and to be effective must be set __________ the equilibrium price.
Referring to the graph, fully explain the consequences of a Maximum Price Control on the market for cycle helmets. Include the following:
(i) quantity demanded before and after the price control
(ii)quantity supplied before and after the price control
(iii)a problem the price control might create and a possible solution for the problem outlined.
What would the difference between (P x Q) and (Maximum price x Qs) indicate?
How would you calculate the change in the total value of sales after a maximum price is imposed?