Question

Mortimer loves sushi. he loves sushi so much that he asks his congressional representative to work for passage of a binding price ceiling law. who would be affected by this law and how? some consumers would benefit from such a law because prices for sushi would be lower for those able to buy it in the legal market. consumers would benefit from such a law because the sushi would be made of higher-quality fish, and each serving would be larger than it had been with no binding price ceiling in place. sellers would benefit from such a law because they would receive a higher price for their products. consumers would benefit from such a law because prices would be lower and all would be able to purchase sushi cheaply. sellers would benefit from such a law because they would be able to sell higher-quality sushi and thus capture a larger share of the market.

Answer 1

First option.

Indeed, some people may benefit by paying the artificial price, but not all as other people may not be able to satisffy all their demand as a price ceiling will also effectively create a shortage due to the low prices disincentivizing producers.