Summary of Executive Order no.

39,2023 IMPOSITION OF MANDATED PRICE

CEILING

Increasing the price of goods, especially rice, is a big challenge for Filipinos. This is a
particularly difficult problem for our compatriots. The more it progresses, the worse it gets,
which is why there are so many complaints. A historic event in which President Marcos
issued Executive Order No. 2. 39, 2023 (imposes mandatory price cap on rice). Many people
are happy, but what is it? This EO serves as a necessary lifeline for Filipinos facing high rice
prices. The introduction of price caps is aimed at limiting price manipulation and hoarding
activities by some entrepreneurs, which lead to price declines. This is a type of intervention
when there is no price for rice or when the price is high. Therefore, they agree with the
President on the introduction of rice prices. It's best to do this now to stabilize prices and help
people right away. According to EO No. 39, the price of regular milled rice does not exceed
P41.00 per kilogram, while the price of well-milled rice is only P45.00 per kilogram.
According to the National Economic and Development Authority (NEDA), rice price caps
not only lower prices and punish violators, but also deter individuals from hoarding rice and
making its vulnerability illegal. This is also the purpose. NEDA urges timely revision of rice
price policy in view of continued price increases in major food markets across the country
and the threatening impact of El Niño and other global crises affecting global markets.
Emphasis is placed on implementation. The imposition of regulations and price caps is only a
temporary measure by governments to ensure sufficient supply when the time comes to avoid
shortages. Therefore, from the point of view of unity, we have the right to report all states that
do not comply with the president's proposals. Our government hopes that one day we will see
good results by implementing this EO in our country.
Price ceiling diagram Usually, the price floor is set above the equilibrium point of the supply
and demand diagram. If you set the floor price higher than the equilibrium price, the price of
the product will be higher. Setting a price floor lower than a price point does not affect the
price of your product. Setting a price ceiling lower than the price protects entrepreneurs from
incurring losses. A price ceiling higher than the exquisite price will not affect the market.
Sellers will not be disappointed. This means that the price floor for services should not be set
too high, and it is natural to set the price low. On the other hand, the fixed price interest rate
is an intervention in the entrepreneur's losses, so it should not be lower than the price of the
Equilibrium, but it should not affect the entrepreneur with respect to the price.
Position Paper

The problem is becoming more serious in the Philippines, but the price of staple food,
especially rice, is rising. This will cause many Filipinos to suffer even more. A lot of people
complain, but out of necessity I have no choice but to buy it. This problem was solved by our
government, especially by the president. IMPOSITION OF MANDATED PRICE CEILINGS
ON or Executive Order No. 39 2023. As a learner, I agree in accordance with his EO No.
39, as the introduction of price caps will especially help alleviate the high prices of key raw
materials in the market. It makes sense to implement it in our country. Because no one is an
exemption or punish anyone who violates this proposal, so not only the people but the entire
country will benefit from it. This solution may be temporary, but it will go a long way in
keeping the price it deserves. Governments intend to avoid the need to increase supplies to
avoid long-term shortages and affect the economic development of the Philippine nation. The
graphs used in price caps are also important tools for identifying factors that may and may
not contribute to losses. Here we also check whether setting floor and ceiling prices makes
sense. The illustrated explanation of the upper price is intended to convey the quality that the
lower price brings to our beds.

Effect of having a Price Floor

Good

 Higher wages for workers

 Greater profit for sellers•

Disadvantages:

 Higher price of goods.

 May be the cause of surplus of goods and Lower demand for goods.

Effect of having a Price Ceiling

Good

 : Low prices of goods.

 Assurance to consumers. •

Disadvantages:
  Decrease in Supply
 Causes scarcity and Causes the existence of illegal markets (black market)

For the measure to take effect, the maximum price must be below the equilibrium price. The
maximum price is binding and leads to a change in the equilibrium quantity. In other words,
the quantity demanded increases while the quantity supplied decreases. There are many
things we can do to transform our economy, but they say that nothing is impossible if we all
act, so we'd better come together and work together. You might get stuck on small things, but
if you're one of those people, it's a big change. This executive order is not permanent, but if
the outcome is right, we all benefit and those who cheat and exploit are punished.