Question

On which kinds of goods do governments generally place price ceilings?

those that are cheap but could become more expensive without the ceiling

those that are not necessary but have become customary

those that are essential but too expensive for some consumers

those that are essential and cheap

Answer 1

The correct answer is those that are essential but too expensive for some consumers

These are items that everyone needs and consumes on a regular basis but that could easily become expensive if the producers wanted them to become expensive. This includes things like bread or milk because these things need to be affordable for everyone so the government can put a price ceiling and the manufacturers can't raise their prices higher than that.