An example of a ________ would be the government setting the price of coffee below the equilibrium price.
A) non-income tax
B) rational expenditure
C) black market
D) price ceiling

Question

Quizplus · Accepted Answer

A price ceiling is a government-imposed limit on how high a price can be charged on a product, in this case, coffee. Setting the price below the equilibrium price creates a price ceiling, which can lead to shortages as the demand exceeds the supply at that price point.

An Example of a ________ Would Be the Government Setting