A binding price ceiling is usually designed to:
A)keep prices below the equilibrium level.
B)increase the quality of the good.
C)prevent shortages.
D)increase efficiency.

Question

Quizplus · Accepted Answer

A binding price ceiling is a government-imposed limit on the maximum price that can be charged for a good or service. This is typically done to keep prices below the equilibrium level in order to make the good more affordable for consumers. If the ceiling is set too low, it can lead to shortages, but the intent is to help consumers by preventing them from being priced out of the market. The goal is not to increase efficiency or quality, but rather to make the good more accessible to a larger number of consumers.

A Binding Price Ceiling Is Usually Designed To