Some people advocate price ceilings in certain markets because they seek to

Question

Quizplus · Accepted Answer

Price ceilings may benefit consumers, particularly those with limited incomes, by lowering the price they pay for goods, which may increase their welfare. However, in certain markets, price ceilings can lead to shortages, reduced quality, or black markets, which can decrease overall welfare. Supporters of price ceilings may argue that redistributing welfare from producers to consumers is worth sacrificing overall welfare, particularly if producers enjoy market power or are engaging in price gouging. Therefore, option B is the most appropriate because it describes the justification for price ceilings that some people may have.

Some People Advocate Price Ceilings in Certain Markets Because They