Price controls on goods can be set by which of the following?

• A. Private firms
• B. Individual consumers
• C. International organizations
• D. Government authorities

Answer: (D)

Verified step by step guidance

1. Understand the concept of price controls: Price controls are government-imposed limits on the prices that can be charged for goods and services in a market.
2. Identify the entities involved in setting prices: Private firms and individual consumers typically respond to market prices rather than set them, while international organizations may influence policies but do not directly set price controls.
3. Recognize the role of government authorities: Governments have the legal power to impose price ceilings (maximum prices) or price floors (minimum prices) to regulate markets.
4. Conclude that price controls are set by government authorities because they have the regulatory authority to enforce such controls.
5. Summarize that among the options given, only government authorities can legally implement and enforce price controls on goods.