Prohibitive price
The prohibitive price (from Latin : prohibere = (to) prevent) is understood in microeconomics as the price that is so high that households demand zero.
The prohibitive price results graphically as the price coordinate of the intersection between the demand curve and the price axis.
Similarly, the size of the saturation amount can be read from the amount coordinate of the intersection between the function and the amount axis.
Individual evidence
- ↑ Hal Varian: Fundamentals of Microeconomics. 8th edition. Oldenbourg Wissenschaftsverlag, Munich 2013
- ↑ Gabler Wirtschaftslexikon , accessed on February 9, 2014.