Asked by
Kirsten Rochelle
on Oct 26, 2024
Verified
Hugo Chávez was the president of Venezuela.Venezuela is a major producer of oil products,which remain a critical component of Venezuela's economy.Suppose President Chávez wanted to increase his popularity with the citizens of Venezuela and enacted a government policy to reduce the price of gasoline sold at state-owned gas stations to 50% of the previous price.This policy is called a:
A) laissez faire policy.
B) price floor.
C) price ceiling.
D) quota.
Price Ceiling
A government-imposed limit on how high a price is charged for a product.
Oil Products
Refined products derived from crude oil processing, such as gasoline, diesel, jet fuel, and heating oil.
Hugo Chávez
Former Venezuelan military officer and politician who served as the President of Venezuela from 1999 until his death in 2013.
- Explain the rationale behind government policies of price control for political or social objectives.
- Delve into the impact that price ceilings have on the functionality of markets and on the well-being of consumers and producers, with a particular emphasis on shortages.
Verified Answer
TS
Learning Objectives
- Explain the rationale behind government policies of price control for political or social objectives.
- Delve into the impact that price ceilings have on the functionality of markets and on the well-being of consumers and producers, with a particular emphasis on shortages.