Soru
4) A price ceiling imposed by the government __ A) helps establish equilibrium in case of a shortage or surplus B) is a tax that increases the market price of a good C) can create situations of excess demand D) involves pricing a commodity above the market price
Çözüm
4
(228 Oylar)
Belgin
Kıdemli · 9 yıl öğretmeni
Uzman doğrulaması
Cevap
'C'
Daha Fazla
## Step 1A price ceiling is a maximum price that the government sets for a particular good or service. This is usually done to protect consumers from conditions that could make necessary commodities prohibitively expensive.## Step 2Option A suggests that a price ceiling helps establish equilibrium in case of a shortage or surplus. This is not accurate. A price ceiling is typically imposed when there is a shortage of a good, not a surplus. The aim is to make the good more affordable, not to balance supply and demand.## Step 3Option B suggests that a price ceiling is a tax that increases the market price of a good. This is also incorrect. A price ceiling is not a tax. It is a maximum price set by the government, not a tax that increases the price.## Step 4Option C suggests that a price ceiling can create situations of excess demand. This is correct. When the price is set below the market equilibrium price, the quantity demanded increases, but the quantity supplied does not increase proportionately. This can lead to excess demand, also known as a shortage.## Step 5Option D suggests that a price ceiling involves pricing a commodity above the market price. This is incorrect. A price ceiling is set below the market equilibrium price, not above.