alleryFixing maximum prices of medicines to stop overcharging is an example of what?
APrice floor
BFree pricing
CPrice ceiling
DPublic good
Answer & Solution
Correct answer: C. Price ceiling
A maximum price on essential goods such as medicines is a price ceiling.
Keep practising Markets and Price Mechanisms
Browse all Markets and Price Mechanisms questions for CBSE Class 9, or explore more Social Science topics.
Related questions
A cheaper way to grow wheat raises supply at every price. What happens to the equilibrium If demand increases and the supply curve stays put, what happens to equilibrium price and In economics, what is a movement along a demand curve called?How can heavy rules and price controls hurt long-term output?Many permits for food safety, fire safety and pollution control burden which group most?The government fixes wheat at ₹20 per kg while the market price is ₹30. What may follow?Each family hopes others will pay for a park, so too little is raised. What follows?Why do private companies usually avoid providing public goods?