Price controls are usually imposed in response to an:
A) expected increase in prices.
B) expected decrease in prices.
C) unexpected increase in prices.
D) unexpected decrease in prices.

Question

Quizplus · Accepted Answer

Price controls are usually imposed in response to an unexpected increase in prices. This is because when prices rise suddenly and steeply, it can lead to inflationary pressures and cause a strain on the economy, particularly for consumers who may struggle to afford basic necessities. Governments may therefore impose price ceilings, which limit the amount that sellers can charge for goods and services, in order to prevent prices from spiraling out of control.

Price Controls Are Usually Imposed in Response to An