Refer to the information provided in Figure 4.3 below to answer the question(s) that follow. Figure 4.3
-Refer to Figure 4.3. An example of an effective price ceiling would be government setting the price of pencils at
A) $0.40.
B) $0.45.
C) $0.50.
D) $0.55.

Question

Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.  Figure 4.3
-Refer to Figure 4.3. An example of an effective price ceiling would be government setting the price of pencils at
A) $0.40. 
B) $0.45. 
C) $0.50. 
D) $0.55.

Quizplus · Accepted Answer

A price ceiling is considered effective if it is set below the equilibrium price. Since the equilibrium price is not provided, we cannot determine the correct answer without additional context or the referenced figure. However, typically, an effective price ceiling is one that is lower than what the market would naturally set, leading to a shortage.

Refer to the Information Provided in Figure 4