Price Ceilings, Price Floors, and Black Markets

5. Consumer and Producer Surplus; Price Ceilings and Price Floors / Price Ceilings, Price Floors, and Black Markets / Problem 2

Problem 2

What is a price ceiling?

The price at which supply equals demand.

A price set by producers to maximize profits.

A legal maximum price that can be charged for a good or service.

A legal minimum price that can be charged for a good or service.