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Semmy [17]
3 years ago
10

A price ceiling is not necessarily in the public's best interest because

History
1 answer:
Vitek1552 [10]3 years ago
3 0

Answer:

It can make otherwise available goods not available because of the low price.

Explanation:

Price Ceiling refers to a regulation made by government to put a "maximum price" for a certain type of product.

One benefit of price ceiling is to prevent the producers from imposing high profit margin that couldn't be afforded by the customers.

But, there's a downside. To produce product with higher quality, producers typically need to sacrifice higher cost to create it. They need to increase the price of the products to make a return from that higher quality products. With price ceilings, many producers wouldn't be able to make such quality improvement.

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