Price ceilings are adopted in most cases because
A) the government views the current equilibrium price as too high for consumers.
B) the government wants to create surpluses.
C) the government favors a non-intervention policy.
D) producers need incentives to produce more of the good or service.

Question

Quizplus · Accepted Answer

Price ceilings are usually adopted when the government believes that current market prices are too high for consumers to bear. The government may implement price ceilings in order to make certain goods more affordable and accessible to consumers, especially when it comes to necessities like food, housing, and healthcare.

Price Ceilings Are Adopted in Most Cases Because