Hugo Chávez was the president of Venezuela. Venezuela is a major producer of oil products, which remain the keystone of Venezuela's economy. Suppose President Chávez wanted to increase his popularity with the citizens of Venezuela and enacted a government policy to reduce the price of gasoline sold at state-owned gas stations to 50 percent of the previous price. This policy is called a:

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how high a price can be charged for a product, in this case, gasoline. By reducing the price to 50 percent, the government is setting a maximum price, which is characteristic of a price ceiling.

Hugo Chávez Was the President of Venezuela