Mortimer Loves Sushi

question 23

Multiple Choice

Mortimer loves sushi.He loves sushi so much that he asks his congressional representative to work for passage of a binding price ceiling law.Who would be affected by this law and how?

• A) Sellers would benefit from such a law because they would receive a higher price for their product.
• B) Consumers would benefit from such a law because prices would be lower and all would be able to purchase sushi cheaply.
• C) Consumers would benefit from such a law because the sushi would be made of higher-quality fish, and each serving would be larger than it had been with no binding price ceiling in place.
• D) Some consumers would benefit from such a law because prices for sushi would be lower for those able to buy it in the legal market.
• E) Sellers would benefit from such a law because they would be able to sell higher-quality sushi and thus capture a larger share of the market.

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Definitions:

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