Asked by Eddie Sanchez on May 07, 2024
Verified
A maximum price, set by the government, that sellers may charge for a good is known as
A) a price floor.
B) a price rationing mechanism.
C) a price ceiling.
D) a subsidy.
Maximum Price
A price ceiling set by the government or a regulatory body, above which a product or service cannot be sold in the market.
Price Ceiling
A government-imposed limit on how high a price can be charged for a product, service, or commodity.
Government
Government is the system or group of people governing an organized community, often a state.
- Assess the role of price regulation, namely minimum and maximum price settings, in maintaining market equilibrium.
Verified Answer
ME
Mandy EstradaMay 12, 2024
Final Answer :
C
Explanation :
A price ceiling is a government-imposed limit on how high a price can be charged on a product, with the aim of keeping prices affordable for consumers.
Learning Objectives
- Assess the role of price regulation, namely minimum and maximum price settings, in maintaining market equilibrium.