Use the following to answer questions:
Figure: The Market for Economics Textbooks
-(Figure: The Market for Economics Textbooks) Look at the figure The Market for Economics Textbooks. Suppose the government believes textbooks are too expensive and it wants to make sure textbooks are affordable to more students. This type of price control is called a price _____, and one possible binding price control would be _____.
A) floor; $100
B) floor; $40
C) ceiling; $40
D) ceiling; $100

Question

Use the following to answer questions:
Figure: The Market for Economics Textbooks 
-(Figure: The Market for Economics Textbooks) Look at the figure The Market for Economics Textbooks. Suppose the government believes textbooks are too expensive and it wants to make sure textbooks are affordable to more students. This type of price control is called a price _____, and one possible binding price control would be _____.
A) floor; $100 
B) floor; $40 
C) ceiling; $40 
D) ceiling; $100

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how high a price can be charged, and a binding price ceiling would be set below the equilibrium price, such as $40, to make textbooks more affordable.

Use the Following to Answer Questions