If a government imposes a $2 maximum price on a gallon of gasoline in the petroleum market, this would be an example of

Question

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Imposing a maximum price on a good or service is known as a price ceiling. In this case, the government is setting a price ceiling of $2 on gasoline, which is the maximum price that can be charged in the market. This is usually done to make the product more affordable for consumers or to prevent price gouging during times of crisis.

If a Government Imposes a $2 Maximum Price on a Gallon