An effective price ceiling is one that causes the market to ______________________when it is imposed. * stay at equilibrium move away from equilibrium move closer to equilibrium nothing can be said without additional information

An effective price ceiling is one that causes the market to ______________________when it is imposed. * stay at equilibrium move away from equilibrium move closer to equilibrium nothing can be said without additional information

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 18SQ

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Question

An effective price ceiling is one that causes the market to ______________________when it is imposed. *

stay at equilibrium

move away from equilibrium

move closer to equilibrium

nothing can be said without additional information

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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