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 product.
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 would limit the amount that sellers could charge for their sushi. This would likely lead to lower prices for consumers who are able to purchase it legally. However, not all consumers would benefit, as some may not be able to find sushi at the lower price due to shortages caused by the price ceiling. Sellers may also be negatively affected if they are unable to cover their costs at the lower price, leading to reduced profits or even going out of business.

Mortimer Loves Sushi