Why Are Binding Price Ceiling Laws Passed

question 97

Multiple Choice

Why are binding price ceiling laws passed?

• A) They make goods more expensive (and profitable)for firms.
• B) They encourage sellers to produce more of a good.
• C) They encourage producers to sell higher-quality products.
• D) They permit customers to obtain higher-quality products.
• E) They make a good less expensive for those customers who are able to purchase the good in the legal market.

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Definitions:

Risk Takers

Individuals or entities willing to engage in behaviors or decisions that involve potential losses or failure in pursuit of potential gains.

For-Profit Business

A type of organization that operates with the principal goal of making profits for its owners or shareholders.

Nonprofit

Reiteration of nonprofit organizations, indicating entities devoted to advancing a social cause without the aim of making a profit.

Satisfying Customers

The process of meeting or exceeding customer expectations through quality service or products, resulting in customer satisfaction.