If a price ceiling is to accomplish its intended goal of lowering overall spending, which of the following must be true?

Name: If a price ceiling is to accomplish its intended goal of lowering overall spending, which of the following must be true?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If demand is relatively price inelastic, then consumers will continue to purchase the good or service even at the lower price imposed by the price ceiling. This would result in a reduction in overall spending, which is the intended goal of the price ceiling.

If a Price Ceiling Is to Accomplish Its Intended Goal