Study Guide and Quiz

Question 10 • Intro to Software Tech B - TLC

What is a price ceiling?

Answer

The maximum price the government allows sellers to charge for a product

A form of price skimming that allows companies to set prices as high as they want

The minimum wage the government requires that companies pay employees for hourly work

A penetration pricing strategy

Explanation

A price ceiling is a legal limit on how high a seller may set the price of a product. Therefore, choice A, “the maximum price the government allows sellers to charge,” is correct. A minimum wage is a price floor for labor, not a price ceiling.

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