Price ceilings are designed to
A) establish a maximum allowable price.
B) allow free market prices to be achieved.
C) create surpluses where none existed before.
D) none of the above.

Question

Quizplus · Accepted Answer

Price ceilings are government regulations that set a maximum price that can be charged for a product or service. The purpose of a price ceiling is to make goods and services more affordable for consumers, particularly low-income consumers. By establishing a maximum allowable price, price ceilings can prevent prices from rising too high and prevent producers from taking advantage of consumers.

Price Ceilings Are Designed to