a price ceiling is a. often imposed on markets in which ""cutthroat competition"" would prevail without a price ceiling. b. a legal maximum on the price at which a good can be sold. c. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling. d. All of the above are correct.

Question

Parker Clements

Business

11 January, 00:13

a price ceiling is a. often imposed on markets in which ""cutthroat competition"" would prevail without a price ceiling. b. a legal maximum on the price at which a good can be sold. c. often imposed when sellers of a good are successful in their attempts to convince the government that the market outcome is unfair without a price ceiling. d. All of the above are correct.

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Bumblebee · Answer 1

A price ceiling is a legal maximum on the price at which a good can be sold.

Explanation:

When there is a limit that is stated by the government legally in the determination of the price at which a product must be sold refers to price ceiling. The price ceiling is said to be more effective when it is set to the price lower than the natural market equilibrium.

When the government sets the prices ceiling for any product then there will be a shortage for the product. The price ceiling is used by the government for the purpose of protecting the consumers of a particular product from a situation in which the commodity becomes more expensive to them.