Which of the following observations would be consistent with the impact of price ceilings?
A) Books are printed on higher quality paper.
B) Full-service gasoline stations stay open for 24 hours.
C) New automobiles are painted with more coats of paint.
D) Newspapers switch to a smaller font size in order to decrease bulk.

Question

Quizplus · Accepted Answer

Price ceilings are maximum prices that can be charged for goods or services. When such ceilings are implemented, sellers are required to reduce their prices to the ceiling price or face penalties. This often results in a decrease in the quality or quantity of the product supplied. In the case of newspapers, switching to a smaller font size would help decrease the bulk of the newspaper and still meet the price ceiling, while reducing the cost of producing larger newspapers. Therefore, the observation that newspapers switch to smaller font sizes in order to decrease bulk would be consistent with the impact of price ceilings.

Which of the Following Observations Would Be Consistent with the Impact