Which of the following statements about government price controls is most accurate.They
A)ensure that the actual price is at its free- market equilibrium.
B)inform consumers what is the maximum price they should pay.
C)usually set upper or lower limits on prices.
D)act as a guideline to producers as to what is a fair price.
E)ensure that transactions take place at a fair price.

Question

Quizplus · Accepted Answer

Government price controls usually set upper or lower limits on prices, rather than ensuring that the actual price is at its free-market equilibrium. The goal is to regulate prices in order to promote certain outcomes, such as protecting consumers from high prices or ensuring that producers receive a fair price for their goods. However, these controls can also have unintended consequences, such as creating shortages or surpluses in the market.

Which of the Following Statements About Government Price Controls Is