Question

The town of Fairness has a law that says that wages should be high enough to ensure that all people can afford to buy enough food to feed their families. The law that sets food prices low enough to meet these requirements would be an example of a:

A. minimum wage law.

B. black market price.

C. price ceiling.

D. price floor.

Answer 1

Answer: (C) Price ceiling

Explanation:

The price ceiling is mainly occur due to the increase in the price of the various types of products and the services.

The main purpose of the price ceiling is that it restrict or control the price that the merchant are charging very high charge for the goods and the services in an organization.

The price ceiling is manly use by the government for protecting the extra charge on the price of products to the customers.

According to the given situation, the law which sets the process of the foods or the products low this is the example of a price ceiling.

Therefore, Option (C) is correct.