Final answer:
Governments apply price ceilings to help buyers by setting a maximum price for goods, intended to be below equilibrium. This action does not shift the demand or supply curves, but can lead to shortages and a decrease in product quality. The correct option is A.
Step-by-step explanation:
When governments apply price ceilings, they primarily aim to help buyers by keeping prices low for essential goods. The correct answer to the student's question is a) Buyers.
Concerning the effect of a price ceiling on the market, it does not usually shift demand or supply curves; rather, it sets a maximum price that sellers are allowed to charge, which is below the market equilibrium price. The correct answer is d) neither.
Price ceilings can lead to shortages, as the quantity demanded exceeds the quantity supplied at the set ceiling price. Those who can purchase the product at the lower price benefit, but sellers, and those who cannot purchase the product due to the shortage, suffer. In some cases, the quality of the product might also deteriorate as a consequence of the price ceiling.