Asked by Tommy Clobes on May 14, 2024
Verified
Which of the following public policies is an example of a price ceiling?
A) Support prices for agricultural commodities
B) Minimum wage laws
C) Rent control program
D) all of the above
Price Ceiling
A legal maximum price that can be charged for a good or service, aimed at preventing prices from becoming too high.
Rent Control Program
Government policies that limit the amount landlords can charge for rent to make housing more affordable for tenants.
Agricultural Commodities
Products derived from farming or the cultivation of land such as grains, vegetables, fruits, and livestock.
- Gaining an understanding of the mechanisms behind price ceilings and price floors.
Verified Answer
SD
Shwetanjli DahiyaMay 16, 2024
Final Answer :
C
Explanation :
Rent control programs set a maximum price that landlords can charge for rental properties, which is an example of a price ceiling. Support prices for agricultural commodities and minimum wage laws are not examples of price ceilings.
Learning Objectives
- Gaining an understanding of the mechanisms behind price ceilings and price floors.