Exhibit 4.9

-In a rental market like the one in the Exhibit given below, a government-imposed rule that rent cannot exceed $750 per month is referred to as _____

Question

Exhibit 4.9
 
-In a rental market like the one in the Exhibit given below, a government-imposed rule that rent cannot exceed $750 per month is referred to as _____

Quizplus · Accepted Answer

A government-imposed rule that sets a maximum price that can be charged for a good or service is called a price ceiling. In this case, the government has imposed a maximum rent of $750 per month, which is a price ceiling. Choice A, a trade barrier, is a different concept that refers to measures that restrict international trade. Choice B, quality control, is a process of ensuring that products or services meet certain standards of quality. Choice D, a price floor, is a government-imposed minimum price that cannot be exceeded, which is not applicable in this scenario. Choice E, a subsidy, is a financial grant given by the government to support an individual or industry, which is also not applicable in this case.

Exhibit 4.9 -In a Rental Market Like the One in the Exhibit