Suppose a government imposes a binding price ceiling on a good. Which of the following groups is most likely to favor the price ceiling?
A)People having a low opportunity cost of time
B)People having high hourly wages and salaries
C)People having a low propensity to consume
D)People having a high propensity to invest
E)People supplying the good in the market

Question

Quizplus · Accepted Answer

People having a low opportunity cost of time are most likely to favor the price ceiling as they are willing to spend more time searching for the good at the lower price. They value their time less than the money saved from the lower price.

Suppose a Government Imposes a Binding Price Ceiling on a Good