Final answer:
The correct term for charging different prices to different buyers for the same product or service is price b) discrimination.
Step-by-step explanation:
The practice of charging different prices to different buyers for a specific product is known as price discrimination. It involves a seller setting varying prices for the same product or service based on various criteria that could include customer characteristics, purchase location, or purchase time. The goal of price discrimination is to maximize profits by capturing consumer surplus and charging each buyer the maximum they are willing to pay for a unit of the good or service.
A price ceiling is a legal maximum price set by the government on how much can be charged for a product or service, typically to protect consumers from excessive prices during high demand periods or in markets with low competition. On the other hand, price control refers to any legal measures by the government to regulate prices, which could include both price ceilings and price floors.
A price ceiling set above the equilibrium price would not impact the market since market prices are already lower. However, a price floor would have the largest effect if set substantially above the equilibrium price, as it would create a surplus by preventing the market from clearing.