Question

Which of the following statements about price ceilings is TRUE? (Assume the price ceiling is set below the unregulated equilibrium price.)

Group of answer choices

A) Price ceilings make sellers worse off.

B) Price ceilings make buyers better off.

C) Both a) and b) are true.

D) Neither a) nor b is true).

Answer 1

Question- which of the following statements about price ceilings is TRUE? (Assume the price ceiling is set below the unregulated equilibrium price.)

Group of answer choices

A) Price ceilings make sellers worse off.

B) Price ceilings make buyers better off.

C) Both a) and b) are true.

D) Neither a) nor b is true).

Answer-The correct answer here is Option C, that is Both A) and B) are True.

As because in price celing a highest amount is set by the government above which the seller cannot charge, And as prices are low the quantity demanded will be more by the consumers compared to the quantity supplied by sellers.