An effective price ceiling is best defined as????

Question

An effective price ceiling is best defined as:

A) a price lower than any supplier is willing to sell.

B) a price imposed by government below equilibrium price.

C) a price higher than any consumer is willing to pay.

D) a price imposed by government above equilibrium price.

Answer 1

B) a price imposed by government below equilibrium price.

If it's above equilibrium price, it won't be effective, because the market price will be below it.