Asked by Mohamed Araye on May 09, 2024
Verified
A price ceiling is
A) a minimum price set by government that sellers may charge for a good.
B) a maximum price set by government that sellers may charge for a good.
C) the difference between the initial equilibrium price and the equilibrium price after a decrease in supply.
D) the minimum price that consumers are willing to pay for a good.
Price Ceiling
A government-imposed limit on the price charged for a product, intended to prevent the price from rising to a certain level.
Maximum Price
A price ceiling set by a government or regulatory body, above which a particular good or service cannot be sold.
Government
The governing body of a nation, state, or community which is responsible for making and enforcing laws and managing public resources and affairs.
- Investigate the repercussions of establishing price barriers, including ceilings and floors, on the overall market balance.
Verified Answer
CB
Christina BissuMay 10, 2024
Final Answer :
B
Explanation :
A price ceiling is a legal maximum on the price at which a good can be sold. It is set by the government to ensure that goods remain affordable to the general public.
Learning Objectives
- Investigate the repercussions of establishing price barriers, including ceilings and floors, on the overall market balance.