Which would be the least likely result of a price ceiling imposed in the market for rental cars?
A) slow replacement of old rental cars with new ones
B) poor maintenance of the rental cars
C) dirtier exteriors and interiors of rental cars
D) free gasoline given to people as an incentive to rent a car

Question

Quizplus · Accepted Answer

A price ceiling would limit the amount that rental car companies can charge for their services. Giving out free gasoline would not affect the price of the rental car itself, and would act as an incentive to rent. However, the other options (slow replacement of old cars, poor maintenance, dirtier exteriors and interiors) are more likely because rental car companies would have less revenue to spend on upgrading and maintaining their fleet.

Which Would Be the Least Likely Result of a Price