In April 2021, there was shortage of ABC cement in the country which led to a rise in the price of ABC cement. The government then intended to put a price ceiling on cement in the country to minimize the loss to users of cement for construction purposes. Some people were of the view that “the fixing of a price ceiling for cement in the country will not have any effect”. Briefly discuss with the aid of an appropriate diagram, the effect of the imposition of price ceiling on ABC cement in the market.
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After the imposition of the
An economist trained in the Havard University is of the view that, the final
Another economist trained in the University of Ghana, however, on the other hand thinks the final equilibrium price can only be higher than the initial equilibrium price.
By using appropriate diagram(s) briefly explain who is right. If none of the two
economists is right, what is your view?
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