A price ceiling is a government regulation that limits the maximum price that a producer can charge for a good or service. It is often put in place to protect consumers from high prices, but can create shortages and reduce the quality of goods or services.

Solved

A Price Ceiling Is

Question 134

Multiple Choice

A price ceiling is

A) the lower bound that consumers are willing to pay for a good or service.
B) the minimum price that a consumer is willing to pay for a good or service.
C) the maximum price that a consumer is willing to pay for a good or service.
D) a government regulation that places an upper limit on the price of a good or service.
E) a government regulation that put a lower bound on prices.

Correct Answer: