If you were a politician,why would you find it difficult to remove a binding price ceiling?
A) because it greatly benefits firms, and they would spend a lot of money to lobby against the law's repeal
B) because it greatly benefits government, which receives additional tax revenue as a result
C) because it greatly benefits all consumers, and they are also voters
D) because it greatly benefits some consumers who are also voters
E) because it greatly benefits society as a whole, with all consumers able to buy as much as firms produce

Question

Quizplus · Accepted Answer

A price ceiling benefits some consumers by making goods or services more affordable, and those consumers are likely to be voters. Removing a binding price ceiling could lead to higher prices, which could be unpopular with those consumers and harm the politician's chances of being re-elected. However, the benefit is not universal, as some consumers may be willing and able to pay higher prices for better quality or for access to goods or services that are currently restricted due to the price ceiling.

If You Were a Politician,why Would You Find It Difficult