Consider a market in which the government imposes a price ceiling. Assume that neither supply nor demand is perfectly elastic nor perfectly inelastic.
Which of the following groups will always gain from a price ceiling?
Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box.
- Consumers
- Producers
- The government
- Society as a whole, because total surplus will increase
- No group will always gain from a price ceiling
Which of the following groups will always lose from a price ceiling?
Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box.
- Consumers
- Producers
- The government
- Society as a whole, because total surplus will decrease
- No group will always lose from a price ceiling