If the government thinks the price that a consumer has to pay for a good is too low,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 floor sets a minimum price above the equilibrium, raising the price consumers pay. An excise tax increases the cost of production, which can also lead to higher consumer prices.

If the Government Thinks the Price That a Consumer Has