The Most Likely Reason That the Government Would Implement a _____

question 30

Multiple Choice

The most likely reason that the government would implement a _____ is because it feels that the price is too low for _____.

• A)price ceiling;consumers
• B)price floor;consumers
• C)price ceiling;producers
• D)price floor;producers

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Definitions:

Substitution Effect

The change in quantity demanded of a good due to a change in its price, leading consumers to switch to or from substitute products.

Higher Wage

A wage rate that is above the average or minimum level commonly paid for similar work.

Wage Discrimination

Unequal pay for workers who perform similar jobs or duties, often based on gender, race, age, or sexual orientation.

Marginal Productivity

The increase in output produced by adding one more unit of a specific input, keeping all other inputs constant.