Figure 2.2.1
-Refer to Figure 2.2.1 above. If the price of $1.50 is a price imposed by the government, we can call it:
A) a price floor.
B) a price ceiling.
C) a socially optimal equilibrium price.
D) a fiscal price.

Question

Figure 2.2.1
-Refer to Figure 2.2.1 above. If the price of $1.50 is a price imposed by the government, we can call it:
A) a price floor. 
B) a price ceiling. 
C) a socially optimal equilibrium price. 
D) a fiscal price.

Quizplus · Accepted Answer

A price ceiling is a government-imposed maximum price at which a good or service can be sold. In this case, $1.50 is the maximum allowed price.

Figure 2.2.1 -Refer to Figure 2.2.1 Above. If the Price of $1.50