ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A price ceiling is when
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the government sets a maximum price for a good.
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the government sets a minimum price of a good
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The government allows the market to decide the price for a good.
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The government sets an equlibrium price.
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Explanation:
Detailed explanation-1: -A price ceiling is a limit on the price of a good or service imposed by the government to protect consumers by ensuring that prices do not become prohibitively expensive. For the measure to be effective, the price set by the price ceiling must be below the natural equilibrium price.
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