Asked by
Amber Pilgrom
on Dec 11, 2024Verified
Refer to Figure 4-18. The price of the good would continue to serve as the rationing mechanism if
A) a price ceiling of $4.00 were imposed.
B) a price ceiling of $5.00 were imposed.
C) a price floor of $3.00 were imposed.
D) All of the above are correct.
Price Ceiling
a government-imposed limit on how high a price can be charged for a product, service, or commodity, typically to protect consumers from excessive costs.
Rationing Mechanism
A system used to distribute scarce goods or services among a population, often seen in economies facing shortages.
Price Floor
A regulatory measure that sets the lowest legal price a commodity can be sold at.
- Identify the results associated with distinct forms of market regulations, including price caps and price supports.
Verified Answer
SB
Learning Objectives
- Identify the results associated with distinct forms of market regulations, including price caps and price supports.