A price control is ________.
A) a market-determined equilibrium price
B) a non-market price imposition
C) the price at which quantity demanded equals quantity supplied
D) the price that maximizes social surplus

Question

Quizplus · Accepted Answer

Price controls are non-market price impositions set by governments, which can take the form of price ceilings (maximum price) or price floors (minimum price). They are often put in place to protect consumers or to control the distribution of goods and services. In a price-controlled market, the market-determined equilibrium price is not allowed to prevail, and either buyers or sellers may be affected negatively.

A Price Control Is ________