Price ceilings are adopted in most cases because
A) the government views the current equilibrium price as too high for consumers.
B) the government wants to create surpluses.
C) the government favors a non-intervention policy.
D) producers need incentives to produce more of the good or service.
Answer: A
You might also like to view...
Deposits in savings accounts are included in
A) M1. B) M2. C) both M1 and M2. D) neither M1 nor M2.
For which of the following purchases would the absolute price elasticity of demand be smallest?
A) a sports car B) utilities C) chewing gum D) a cell phone
AGI always exceeds taxable income.
A. True B. False C. Uncertain
The difference between total utility and marginal utility is that:
a) Total utility is the complete satisfaction from consuming a good while marginal utility is the satisfaction from consuming one additional unit of a good. b) Both represent the satisfaction obtained from most all goods and services. c) Total utility is the satisfaction from consuming a good while marginal utility is the satisfaction from consuming services. d) Total utility is the satisfaction from consuming one additional unit of a good while marginal utility is the complete satisfaction from consuming a good.