Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk?
A)Policymakers have studied the effects of the price ceiling carefully,and they recognize that the price ceiling is advantageous for society as a whole.
B)Buyers of milk,recognizing that the price ceiling is good for them,have pressured policymakers into imposing the price ceiling.
C)Sellers of milk,recognizing that the price ceiling is good for them,have pressured policymakers into imposing the price ceiling.
D)Buyers and sellers of milk have agreed that the price ceiling is good for both of them and have therefore pressured policymakers into imposing the price ceiling.

Question

Quizplus · Accepted Answer

The most likely explanation for the imposition of a price ceiling on the market for milk is that buyers of milk, recognizing that the price ceiling is good for them, have pressured policymakers into imposing the price ceiling. Price ceilings are typically imposed in response to concerns over the affordability of necessary goods or to protect consumers from exploitation by sellers. In this case, it is likely that policymakers have responded to pressure from buyers of milk who are concerned about the cost of the product.

Which of the Following Is the Most Likely Explanation for the Imposition