10
practice examMultiple Choice

Practice Exam

Question 10 • Economics

The highest amount a landlord can charge for rent is an example of

Answer
A
an elastic service.
B
a price ceiling.
C
a price floor.
D
an incentive.

Explanation

A price ceiling is a legal maximum price that sellers may charge. Since the question describes the highest amount a landlord can charge for rent, it is a price ceiling. A price floor, by contrast, sets a legal minimum price.

AI-written and checked against the verified answer.

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