The town of Fairness has a law that says that wages should be high enough to ensure that all people can afford to buy enough food to feed their families.The law that sets food prices low enough to meet these requirements would be an example of a
A) minimum wage law.
B) fair wage law.
C) price ceiling.
D) black market price.
E) ration price.

Question

Quizplus · Accepted Answer

The law that sets food prices low enough to ensure that all people can afford to buy enough food to feed their families is an example of a price ceiling. A price ceiling is a legal maximum price that can be charged for a good or service, typically set below the market equilibrium price to benefit consumers. In this case, it is set to ensure that all people can afford to buy enough food to feed their families in accordance with the fair wage law in Fairness.

The Town of Fairness Has a Law That Says That