The price of gasoline is generally higher in Hawaii than in the continental United States. Therefore, the Hawaiian legislature passed a law forbidding gas stations from charging a price higher than the average price of gas on the West Coast of the United States. This is an example of:

Question

Brady Shannon

Business

5 September, 15:55

The price of gasoline is generally higher in Hawaii than in the continental United States. Therefore, the Hawaiian legislature passed a law forbidding gas stations from charging a price higher than the average price of gas on the West Coast of the United States. This is an example of:

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Answers (1)

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Shannon · Answer 1

Answer: A price ceiling

Explanation:

A price ceiling is one of the type price control concept which is developed by the government so that they can legally limit on the high price of the products for the purpose of maintain the market equilibrium.

The price ceiling concept is basically using by the government so that they can protect the consumers from the expensive conditions when the various types of companies selling their products and the services at high price.

According to the given question, a price ceiling concept is best illustrating the given example of united states about the high price of gas. Therefore, Price ceiling is the correct answer.