Price ceilings may be imposed if: A. suppliers can make strong moral or political arguments for higher prices. B. demanders can make strong moral or political arguments for higher prices. C. demanders can make strong moral or political arguments for lower prices. D. suppliers can make strong moral or political arguments for lower prices.

Question

Business

Vazquez

11 September, 12:00

Price ceilings may be imposed if: A. suppliers can make strong moral or political arguments for higher prices. B. demanders can make strong moral or political arguments for higher prices. C. demanders can make strong moral or political arguments for lower prices. D. suppliers can make strong moral or political arguments for lower prices.

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Answers (1)

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Nicholas Armstrong · Answer 1

C. Demanders can make strong moral or political arguments for lower prices.

Explanation:

This explained as a legal price limit set by the government on the sellers in a way to be a protection means to the buyers. This will general control some serial hike and outrageous price on some goods and services.

Its effects are of different types; firstly, price ceiling can create huge market efficiencies in a long run and also causes hoarding of products and springing up of black markets and other hook and crook forms of marketing and this is known to cause unrest in the supply side. When these keeps pulling on, it has a negative effect on the economy of the said nation.