93.2k views
4 votes
Draw a price ceiling at $12.

User Avianca
by
8.6k points

1 Answer

1 vote

Final answer:

A price ceiling is a legal maximum price set by the government to keep the price of a necessary good or service affordable.

Step-by-step explanation:

A price ceiling is a legal maximum price that one pays for some good or service. It is imposed by the government to keep the price of a necessary good or service affordable.

For example, during Hurricane Katrina, the price of bottled water increased above $5 per gallon, prompting calls for price controls. However, a price ceiling was not imposed in that particular case.

User Donald Derek
by
7.8k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.