Multiple Choice
Price ceilings are adopted in most cases because
A) the government views the current equilibrium price as too high for consumers.
B) the government wants to create surpluses.
C) the government favors a non-intervention policy.
D) producers need incentives to produce more of the good or service.
Correct Answer:
Verified
Correct Answer:
Verified
Q220: Rationing occurs for goods<br>A) that have a
Q221: We cannot predict the effect on the
Q222: The long-run effect of rent control on
Q223: Suppose there is a simultaneous increase in
Q224: Which of the following is NOT a
Q226: If both supply and demand simultaneously decrease<br>A)
Q227: All of the following result from price
Q228: As compared to the market clearing price,
Q229: Price floors<br>A) provide free market incentives for
Q230: A price ceiling set above the equilibrium