If the government feels that the price in the market is too low for the , it can impose a _.
A)consumers; price ceiling
B)consumers; price floor
C)producers; price ceiling
D)producers; price floor

Question

Quizplus · Accepted Answer

If the government feels that the price in the market is too low for the producers, it can impose a price floor. This ensures that the price of the good or service doesn't fall below a certain level, allowing producers to receive a higher income. A price ceiling, on the other hand, is used to ensure that the price of a good or service doesn't exceed a certain level, which primarily benefits consumers. Therefore, options A and C are not correct.

If the Government Feels That the Price in the Market