Question

Question 1 2 pts With alternative policies like income subsidies and directed construction subsidies readily available, why do governments enact price floors and price ceilings? They can generate much needed revenue for local governments. They can lead to a more efficient allocation of resources. They can be popular with voters, and the costs are not as obvious. They provide public goods that are not provided in an efficient way by competitive markets.

Answer 1

1) option 3 is correct. Price ceiling is basically done to attract consumers by articulating that the particular product has been made affordable. Price floor is imposed specially in farm subsidies and other cases where the producers are captivated by providing them a higher than market price

17) it is the savers. They save from their disposable income a portion which day then invest in the market or in the bank and that money is used as funds for borrowers

18) third is correct. there is a shortage in the market when the quantity supplied is less than the quantity demanded and the price ceiling is used at which the quantity is sold in the market.