Question

question 5
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a price ceiling:
select one:
a. is the price that must be charged in the market.
b. would be imposed if the government believes the market equilibrium price is too low.
c. is the lowest price that the law will allow to be charged in the market.
d. is the highest price that the law will allow to be charged in the market.

Explanation:

A price ceiling is a government-imposed price control that sets a maximum legal price for a good or service, intended to keep prices affordable for consumers. Option a is incorrect because it is not a mandatory price to charge, just a maximum. Option b is wrong because price ceilings are imposed when the equilibrium price is considered too high, not too low. Option c describes a price floor, not a ceiling. Option d correctly defines a price ceiling as the highest legally allowed price.

Answer:

d. is the highest price that the law will allow to be charged in the market.