Question

A price ceiling​ is: A. a maximum price that buyers are willing to pay for a​ good, usually set by government. B. a maximum price that sellers may charge for a​ good, usually set by government. C. a minimum price that sellers may charge for a​ good, usually set by government. D. a minimum price that buyers may charge for a​ good, usually set by those who sell the good.

Answer 1

The correct answer is letter "B": a maximum price that sellers may charge for a​ good, usually set by government.

Step-by-step explanation:

A price ceiling is a maximum amount for a product or service that a seller can charge. A regulator, normally the local government, enforces price limits and is generally intended to protect low-income customers from being pushed off essential goods and services markets.

Answer 2

B. a maximum price that sellers may charge for a​ good, usually set by government.

Step-by-step explanation:

The ceilling price will interfere with the free market creating distortios and inefficiency or not being useful in the best scenario.

Considering a demand and supply curve that intersect at a given point which is the equilibrium the ceilling price could be:

above this therefore, not relevant as agents trade below it

in that point whihc, agains is irrelevant as agents are willing to trade at that value

below equilibrium price, at this point the govrnment forces supplier to produce at a higher amount they are willing to consiering the currnet demand. This makes the supplier leaving the market in the long run therefore, generating scarcity of resources.