A price ceiling is
A) often imposed on markets in which "cutthroat competition" would prevail without a price ceiling.
B) a legal maximum on the price at which a good can be sold.
C) often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
D) imposed to make sure everyone can earn a fair wage.
Correct Answer:
Verified
Q223: Figure 6-1 Q224: A legal minimum on the price at Q225: If a nonbinding price floor is imposed Q226: If a price floor is not binding, Q227: A surplus results when a Q229: Suppose the government wants to encourage Americans Q230: Figure 6-1 Q231: The presence of a price control in Q232: Suppose the equilibrium price of a physical Q233: If a price ceiling is binding, then
Graph (a)
Graph (b)
A)nonbinding price floor
Graph (a)
Graph (b)
A)there
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