In some recent past years, prices of basic food commodities such as corn, rice, and wheat have increased sharply. Chinese authorities were concerned that escalating prices would cause inflation and be followed by civil unrest.
-Suppose the Chinese government regulates the price of food and forbids firms from setting a higher price. In this case the government is setting a

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how high a price can be charged, which is what the Chinese government is doing by forbidding firms from setting a higher price for food.

In Some Recent Past Years, Prices of Basic Food Commodities