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8090 [49]
3 years ago
8

The Market for Economics Textbooks. Suppose the government believes textbooks are too expensive and it wants to make sure textbo

oks are affordable to more students. This type of price control is called a price _____, and one possible binding price control would be _____.
Social Studies
1 answer:
Sergio [31]3 years ago
7 0

Answer: Price ceiling

Explanation:

Price ceiling is the maximum amount a product can be sold by the seller. It is the maximum amount charged for a good or service. Price ceiling is set by the government to avoid sellers exploiting consumers and selling goods at high prices. Price ceilings are mainly applied to energy products, rents, food when the goods become highly priced to regular consumers.

Price ceilings allows essentials goods to be affordable and are set by the government below the equilibrium price. When the government makes a price ceiling on the textbook, the price will be below the equilibrium price and there will be an increase in demand as a result of cheaper price.

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