Rapidly increasing child daycare costs have been a major political concern since well before 1992.Suppose that the government sets the maximum price for daily child daycare expenses at $20 per day,but the current market price is $40 per day.What is MOST likely to happen?
A) More people will try to get access to the lower-cost child daycare,but there will be fewer daycares with spots available at that price.
B) The same number of people will try to get access to daycare,and the same number of childcare centres are willing to accept them at that price.
C) More people will have access to daycare,since the price is lower.
D) Fewer people will try to enrol their children in daycare,and fewer daycare centres will be accepting new children at that price.

Question

Quizplus · Accepted Answer

When the government sets a maximum price for child daycare expenses, it creates a price ceiling. In this case, the price ceiling is set at $20 per day, which is lower than the current market price of $40 per day. As a result, more people will try to access the lower-cost child daycare, but there will be fewer daycare spots available at that price. This is because some daycare centers may find it unprofitable to offer their services at the lower price, and may either shut down or raise their prices. Therefore, option A is the best choice.

Rapidly Increasing Child Daycare Costs Have Been a Major Political