Mortimer loves sushi.He loves sushi so much that he asks his congressional representative to work for passage of a binding price ceiling law.Who would be affected by this law and how?
A) Sellers would benefit from such a law because they would receive a higher price for their products.
B) Consumers would benefit from such a law because prices would be lower and all would be able to purchase sushi cheaply.
C) Consumers would benefit from such a law because the sushi would be made of higher-quality fish,and each serving would be larger than it had been with no binding price ceiling in place.
D) Some consumers would benefit from such a law because prices for sushi would be lower for those able to buy it in the legal market.
E) Sellers would benefit from such a law because they would be able to sell higher-quality sushi and thus capture a larger share of the market.

Question

Quizplus · Accepted Answer

A binding price ceiling law would limit the amount that sellers can charge for sushi, which would lower prices and benefit consumers who can afford to buy it legally. However, consumers who are unable to buy it in the legal market would not be affected by this law. Sellers, on the other hand, would not benefit from this law as they would have to lower their prices, and they may not be able to make a profit selling sushi at the government-mandated price.

Mortimer Loves Sushi