Floor And Ceiling Revenue

Floor and ceiling revenue limits are defined in detail in the access undertaking.

Floor and ceiling revenue. The limits have been based on artc forecasted expenditures for 2008 09 as submitted to the accc as part of artc s application. Ceiling refers to the highest price the maximum interest rate or the largest of some other factor involved in a transaction. Learn vocabulary terms and more with flashcards games and other study tools. Start studying unit 4 elasticity price floors and price ceilings.

The maximum level permissible in a financial transaction. Price floor and ceiling tax subsidy consider the market for butter in saudi arabia. Price ceiling as well as price floor are both intended to protect certain groups and these protection is only possible at the price of others. Price ceiling maximum price the highest possible price that producers are allowed to charge consumers for the good service produced provided set by the government.

Price floor is typically proposed to ensure good income of people involved in farming agriculture and low skilled jobs. The domestic demand function is given by q 10 2 x p the domestic supply function is q 2 x p 2. Price ceilings impose a maximum price on certain goods and services. A budget ceiling sometimes incorrectly referred to as a debt ceiling is a cap on business spending based on one or more formulas or limits set by a business.

A good example of this is the oil industry where buyers can be victimized by price manipulation. Understanding the different methods businesses use to set budget ceilings will help you maintain flexibility in your spending without going into unmanageable. A suppose there is a price ceiling of 2 sar. The graph below illustrates how price floors work.

2008 09 floor and ceiling revenue limits provided should be considered as indicative only.