If the government thinks the price that a consumer has to pay for a good is too high,then which of the following would solve this problem?
A) a price ceiling or an excise tax
B) a price floor or an excise tax
C) a price ceiling or a subsidy
D) a price floor or a subsidy
E) none of the above will lower the price a consumer has to pay for a good

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how much a seller can charge for a certain good or service, and a subsidy is a government payment to encourage the production or purchase of a certain good or service. In this case, if the government thinks the price a consumer has to pay is too high, they can implement a price ceiling to limit how much the seller can charge, and also offer a subsidy to encourage the purchase of the good. This would help to lower the price a consumer has to pay for the good.

If the Government Thinks the Price That a Consumer Has