A basic demand curve. For more information, see Basic Supply and Demand
A basic supply curve. For more information, see Basic Supply and Demand
A price ceiling is the minimum legal price that a seller may charge for a product or service as implemented by the government.
The price floor forces the price above the equilibrium price and causes the quantity supplied (QS) to be greater than the quantity demanded (QD). This leads to an excess of the product, as the consumers are not willing to buy as much product as producers would like at such a high price.