Questions
Single choice
A price ceiling is
Options
A.imposed to make sure everyone can earn a fair wage.
B.a legal maximum on the price at which a good can be sold.
C.often imposed on markets in which “cutthroat competition” would prevail without a price ceiling.
D.often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling.
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Step-by-Step Analysis
The question asks to identify what a price ceiling is, so we evaluate each option in turn.
Option 1: 'imposed to make sure everyone can earn a fair wage.' This is inaccurate as a definition of a price ceiling. While wage floors and wage policies are related to using government intervention to influence earnings, a price ceiling specifically targets the price of goods, not w......Login to view full explanationLog in for full answers
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