When price controls take the form of maximum prices set below the equilibrium price,they are:
A)illegal.
B)equal to the demand price.
C)price floors.
D)price ceilings.

Question

Quizplus · Accepted Answer

When price controls take the form of maximum prices set below equilibrium price, they are called price ceilings. Price ceilings are a type of price control that is intended to keep prices from rising too high. They create a shortage of the product, which may lead to rationing, black markets, or reductions in product quality.

When Price Controls Take the Form of Maximum Prices Set