How can sellers increase profits when they face a price ceiling?
A) charge a higher price for the good
B) charge a lower price for the good to undercut rival sellers
C) produce and sell more output
D) reduce the quality of the product and provide less customer service

Question

Quizplus · Accepted Answer

When a price ceiling is imposed, sellers cannot increase prices to boost profits. Instead, they may reduce costs by lowering product quality or customer service to maintain profitability.

How Can Sellers Increase Profits When They Face a Price