In the above market,economists would call a government-set maximum price of $40 a:

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed restriction on how high a price can be charged for a product or service. In this case, the maximum price set by the government is $40, limiting the price firms can charge for their products. This is an attempt by the government to make the product more affordable for consumers. Therefore, the correct answer is A) price ceiling.

In the Above Market,economists Would Call a Government-Set Maximum Price