A price ceiling
A) is an illegal price.
B) is the price that exists in a black market.
C) is the maximum price that can legally be charged.
D) Both answers A and B are correct.
E) Both answers B and C are correct.
C
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Explain the relationship between price elasticity of demand and total revenue
What will be an ideal response?
Government intervention in a perfectly competitive market
A) reduces economic well-being. B) is an illustration of the "invisible hand theorem." C) increases economic well-being. D) guarantees maximized well-being.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the
equilibrium quantity (Q) of X. Refer to the given information. An improvement in the technology used to produce X will: A. decrease S, increase P, and decrease Q. B. decrease S, increase P, and increase Q. C. increase S, decrease P, and increase Q. D. decrease D, decrease P, and decrease Q.
Recall the Application about how having car insurance affects driving behavior to answer the following question(s).Recall the Application. When a state makes car insurance compulsory, decreasing the number of uninsured drivers, roads tend to become less hazardous.
Answer the following statement true (T) or false (F)