3. You belong to a national organization called Hamburger Lovers USA. Its main purpose is to reduce the price of

bamburgers. the organization wants the government to establish a maximum hamburger price, called a ceiling

price, that ranchers can charge for beef. The thinking is that, with the lower cost of beef, hamburger chains will

charge less. Is this reasoning correct? Explain.

Question

Elaine Cordova

Social Studies

26 November, 02:55

3. You belong to a national organization called Hamburger Lovers USA. Its main purpose is to reduce the price of

bamburgers. the organization wants the government to establish a maximum hamburger price, called a ceiling

price, that ranchers can charge for beef. The thinking is that, with the lower cost of beef, hamburger chains will

charge less. Is this reasoning correct? Explain.

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Answers (1)

Know the Answer?

Angelique Branch · Answer 1

Yes this reasoning is correct because the goal of pricing is to make some amount of money out of the deal so when initial prices begin at a lower price its will tumble through the cycle affecting all prices involved in the process.