A price floor or a price ceiling is an example of:
A)a quantity control.
B)a price control.
C)market equilibrium price.
D)a quota.

Question

Quizplus · Accepted Answer

A price floor or a price ceiling is an example of a price control, as it sets a limit on the maximum or minimum price that can be charged for a good or service, and affects the market price and quantity. A quantity control would be a limit on the amount of a good or service that can be produced or sold. Market equilibrium price is the price at which the quantity demanded equals the quantity supplied, and a quota is a specific amount of a good or service that can be produced or sold.

A Price Floor or a Price Ceiling Is an Example