A price ceiling will have no impact on a market if it is set Select one: a. to maintain parity b. below the equilibrium price c. below last year’s average price d. above the equilibrium price e. by knowledgeable government officials

A price ceiling will have no impact on a market if it is set Select one: a. to maintain parity b. below the equilibrium price c. below last year’s average price d. above the equilibrium price e. by knowledgeable government officials

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A price ceiling will have no impact on a market if it is set

Select one:

to maintain parity

below the equilibrium price

below last year’s average price

above the equilibrium price

by knowledgeable government officials

Video Definition Video Definition Government regulation setting a maximum price a business may charge for a given good or service. A price ceiling itself does not cause demand or supply to change. It is simply a mechanism used to set a price that can be legally charged in the market. Price ceilings are often implemented during times of crisis to avoid price gouging.

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