Question

The ______ is usually instituted via law and is typically applied to necessary goods like food, rent, and energy sources in order to ensure that everyone has access to them.

Options

• Price floor

• Price ceiling

• Both Price floor and Price ceiling

• None of the above

Answer 1

The Price ceiling is usually instituted via law and is typically applied to necessary goods like food, rent, and energy sources in order to ensure that everyone has access to them.

Explanation:

A price ceiling is imposed on essential commodities such as food, rent, etc., to protect consumers from being exploited by higher prices.