Asked by Kevin Vadakkel on May 02, 2024
Verified
The benefit of a price ceiling to ________ is ________.
A) producers; the selling price of the product is above the equilibrium price
B) producers; the ceiling creates excess demand
C) consumers; the selling price of the product is below the equilibrium price
D) consumers; the ceiling creates excess supply
Price Ceiling
A legal maximum price that can be charged for a good or service, above which it cannot be sold.
Excess Demand
A situation in a market where the quantity demanded of a good or service exceeds the quantity supplied at the current price.
- Assess the consequences of price restrictions set by authorities on the behavior of both consumers and producers.
Verified Answer
OE
Olivia EvansMay 08, 2024
Final Answer :
C
Explanation :
A price ceiling set below the equilibrium price benefits consumers because it keeps the selling price of the product lower than what it would be at equilibrium, making it more affordable for them.
Learning Objectives
- Assess the consequences of price restrictions set by authorities on the behavior of both consumers and producers.
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