(Figure: The Market for Microeconomics Textbooks) Use Figure: The Market for Microeconomics Textbooks. Suppose the government believes that microeconomics textbooks are too expensive and wants to make them more affordable, ensuring that they are available to students. The relevant type of price control would be a price _____, and one possible binding price control would be _____.
A)floor; $100
B)floor; $40
C)ceiling; $40
D)ceiling; $140

Question

(Figure: The Market for Microeconomics Textbooks) Use Figure: The Market for Microeconomics Textbooks. Suppose the government believes that microeconomics textbooks are too expensive and wants to make them more affordable, ensuring that they are available to students. The relevant type of price control would be a price _____, and one possible binding price control would be _____. 
A)floor; $100 
B)floor; $40 
C)ceiling; $40 
D)ceiling; $140

Quizplus · Accepted Answer

The government wants to make microeconomics textbooks more affordable and ensure that they are available to students. This suggests a price ceiling would be appropriate. Of the two possible choices for a binding price control, $40 would be more likely to make the textbooks affordable and available to students compared to a higher price. Therefore, choice C is the best answer.

(Figure: the Market for Microeconomics Textbooks) Use Figure: the Market