A price control is:
A)control of the price of a good by the firm that produces it.
B)a legal restriction on how high or low a price in a market may go.
C)an upper limit on the quantity of some good that can be bought or sold.
D)a tax on the sale of a good that controls the market price.

Question

Quizplus · Accepted Answer

A price control is a legal restriction on how high or low a price in a market may go. This can be in the form of a price ceiling, which is an upper limit on the price of a good, or a price floor, which is a lower limit on the price of a good. Price controls are often implemented by governments to protect consumers or producers from price fluctuations, but they can often have unintended consequences such as shortages or surpluses.

A Price Control Is