Which of Why do government leaders impose price controls? Group of answer choices They are trying to promote the formation of black markets. They are trying to ensure that the market reaches equilibrium. They are trying to ensure that all consumers are able to purchase a specific product. They are trying to increase the demand curve. They are trying to ensure that a social goal is satisfied. he following is a correct statement? Group of answer choices Rent control is an illustration of a price floor and the minimum wage is an illustration of a price ceiling. Rent control is an illustration of a price ceiling and the minimum wage is an illustration of a price floor. Rent control and the minimum wage are both illustrations of price ceilings. Rent control and the minimum wage are neither illustrations of price floors nor price ceilings. Rent control and the minimum wage are both illustrations of price floors.

(1) They are trying to ensure that a social goal is satisfied.

(2) Rent control is an illustration of a price ceiling and the minimum wage is an illustration of a price floor.

Explanation:

(1) Ideally there is no price control in a capitalist economy. However, in some situations this may occur to ensure that social welfare is preserved. For example, if the cost of oil rises to a very high level, some governments impose a control on the price of gasoline so that everyone can keep their cars in circulation until the price normalizes.

(2) There are situations where the government extip a maximum or minimum price. This is called price ceiling or price floor. When the government sets a maximum rent price, this is called the price cap. In this case, no rent can cost more than the government price ceiling. Similarly, the price floor is a minimum value that a price can reach. Wage is the price of labor, so the minimum wage is the minimum value at which labor can be paid. This exists to maintain a minimum standard of people's quality of life.