Question

You belong to a national organization called Hamburger Lovers USA. Its main purpose is to reduce the price of hamburgers. The organization wants the government to establish a maximum hamburger price, called a ceiling price, that ranchers can charge for beef. The thinking is that, with the lower cost of beef, hamburger chains will charge less. Is this reasoning correct? Explain.

Answer 1

Yes, this line of thinking is sound because the purpose of pricing is to generate some profit, therefore when starting prices start off low, they will fall through the cycle and effect all prices involved.

Step-by-step explanation: