Question

For decades, the U.S. government burned millions of oranges at the end of most growing seasons because..

A. The market for oranges was expanding

B. A price floor was effective

C. A price ceiling was ineffective

D. Supply and demand both shifted right at harvest time

Explain

Answer 1

For decades, the U.S. government burned millions of oranges at the end of most growing seasons because:

C. A price ceiling was ineffective

price ceiling is the price limit set by government so that the seller can't increase the prices above the set limit. it is done by government to protect consumers. but the increasing prices of oranges in U.S. made the price ceiling ineffective also decreases the demand of oranges among consumers. every year the sale of oranges in U.S. decreases which leads to wastage of production.