Re: [ vuZs.net ] ...2nd Quiz(ECO401)... (correction 2)

Right Answer: shortage

Due to price ceiling, producers cannot keep the price Rs.2 (like in past)  Now they will loose 1 Rs per tablet compared to past due to new price ceiling.

 So they will produce less, in return Pandol will be short in market. 

You answer  that "demand will decrease" not justified because "

Demand falls if price increase" But

  due to price ceiling they can not increase the price. 

If the equilibrium price of Panadol tablet is Rs.2 and government imposes a Rs.1 price ceiling on the price of Panadol tablet, there will be ________ of Panadol tablet.

Surplus

Shortage

Increase in production

Decrease in demand

Regards

Zubair Hussain

www.vuzs.net

On Wed, May 2, 2012 at 9:36 AM, Shahzad Sadiq <bc100200105@vu.edu.pk> wrote:

Assalam o Alaikum.....Dear Brothers & Sisters

Please find the attachment and reply, if you find any mistake.....

Thanks

--

Regards,

 

Shahzad Sadiq

BBA(Hons)

5th Semester

 

...~*Virtual University Of Pakistan*~...

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