Asked by
Autumn Williams
on Nov 17, 2024Verified
Consider the market for gasoline. Buyers
A) and sellers would lobby for a price ceiling.
B) and sellers would lobby for a price floor.
C) would lobby for a price ceiling, whereas sellers would lobby for a price floor.
D) would lobby for a price floor, whereas sellers would lobby for a price ceiling.
Price Ceiling
A government-imposed limit on how high a price can be charged for a product, aimed at protecting consumers from high prices.
Price Floor
A government-imposed minimum price below which a certain good or service cannot be sold, often set to protect producers or sectors.
Lobby
The act of attempting to influence the decisions of government officials, typically by special interest groups.
- Understand the rationales behind imposing and removing price controls.
Verified Answer
PH
Learning Objectives
- Understand the rationales behind imposing and removing price controls.