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QuizMultiple Choice

Case Study: Starting a Business — Unit test

Question 1 • 2102320-Economics HONORS - Edgenuity Teacher

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

Answer
a
an incentive.
a
a price floor.
a
a price ceiling.
a
an elastic service.

Explanation

A price ceiling sets the maximum price that can legally be charged. 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 minimum price.

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