-A price ceiling represents
A) a maximum price that can be legally charged for a product or service.
B) a minimum price that can be legally charged for a good or service.
C) a lottery imposed upon producers by the government.
D) a first come, first served mechanism for controlling prices.

Question

-A price ceiling represents
A) a maximum price that can be legally charged for a product or service. 
B) a minimum price that can be legally charged for a good or service. 
C) a lottery imposed upon producers by the government. 
D) a first come, first served mechanism for controlling prices.

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how high a price can be charged on a product or service, meaning it sets a maximum price. This is often done to ensure that goods and services remain affordable for consumers.

-A Price Ceiling Represents