Which of the Following Is the Most Likely Explanation for the Imposition

question 162

Multiple Choice

Which of the following is the most likely explanation for the imposition of a price ceiling on the market for milk?

• A)Policymakers have studied the effects of the price ceiling carefully,and they recognize that the price ceiling is advantageous for society as a whole.
• B)Buyers of milk,recognizing that the price ceiling is good for them,have pressured policymakers into imposing the price ceiling.
• C)Sellers of milk,recognizing that the price ceiling is good for them,have pressured policymakers into imposing the price ceiling.
• D)Buyers and sellers of milk have agreed that the price ceiling is good for both of them and have therefore pressured policymakers into imposing the price ceiling.

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Definitions:

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of the good that producers are willing and able to sell, usually upward sloping, demonstrating that the higher the price, the more producers are willing to supply.

Burden

The negative impact or strain experienced by individuals or groups due to economic policies, environmental factors, or other societal conditions.

Excise Tax

A tax levied on certain goods and commodities produced or sold within a country and on licenses granted for certain activities.