A price ceiling is, in essence, an implicit tax on producers and an implicit subsidy to consumers.

Name: A price ceiling is, in essence, an implicit tax on producers and an implicit subsidy to consumers.
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Question

Quizplus · Accepted Answer

A price ceiling limits the price that can be charged for a product, reducing potential revenue for producers (like a tax) and allowing consumers to purchase at lower prices (like a subsidy).

A Price Ceiling Is, in Essence, an Implicit Tax on Producers