An example of an ineffective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $5.00 per bushel.
A) $2.25
B) $3.00
C) $4.75
D) $6.00

Question

Quizplus · Accepted Answer

A price ceiling is ineffective if it is set above the market price, as it does not constrain the market. Setting the price at $6.00 when the market price is $5.00 does not affect the market.

An Example of an Ineffective Price Ceiling Would Be the Government