This shall be the word to describe my current state of mood. Although it is only 1 word, it has a lot of meaning in me in different stages after I sat for my Econs Mid Term test today. This is the first time I could not complete 40 MCQ within a hour. I guess the setter assumes that we are a extremely productive humans who could solve every calculation questions (with lots of steps) within 1.5 minute. I am not sure if she is trying to test if we are deploying our dominant strategies. If it is a problem of me, I would not have said that. The problem is that my friends (at least 4) have similar encounter. Since most of us (I mean Econs students) have these problems, the question is why am I feeling so depressed? To be frank, I could not accept the fact that I have fallen a common trap made by students. Such trap is even highlighted in wikipedia. I am seriously MYOPIC about this even though this was being taught in A level Economics as well. Till date, I feel that I still do not understand the essence of the word. That is, price ceiling should be interpreted as ceiling price which means the price at the ceiling (max price). Yet, I keep thinking that it is the price ABOVE the equilibrium price. In order to dismay my current disappointment, I shall put it a point to remember this in the long term. SIGH…
“Students may often incorrectly attribute a price ceiling as being on top of a supply and demand curve when in fact, an effective price floor is positioned above a supply and demand graph.”
TYS 