An Example of an Effective Price Ceiling Would Be the Government

question 28

Multiple Choice

An example of an effective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $4.25 per bushel.

• A) $3.75
• B) $4.25
• C) $7.75
• D) $12.00

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Definitions:

Steak

A cut of meat, typically beef, that is sliced perpendicular to the muscle fibers, often grilled or pan-fried.

Rhode Island

The smallest U.S. state by area, located in the New England region.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite of normal goods.

Income Increases

Situations where individuals or households experience a rise in earnings, affecting their purchasing power and consumption choices.