Question

Hugo Chávez was the president of Venezuela. Venezuela is a major producer of oil products, which remain the keystone of Venezuela's economy. Suppose President Chávez wanted to increase his popularity with the citizens of Venezuela and enacted a government policy to reduce the price of gasoline sold at state-owned gas stations to 50 percent of the previous price. This policy is called a ______.

Answer 1

Answer: Price-ceiling

Explanation:

Price ceiling is referred to as a federal or state government or group enforced price limit or control, on knowing how much higher price is being charged for a commodity, product, or service. Federal or state governments usually tend to use the price ceilings in order to protect and save consumers or customers from the conditions or circumstance that would make the commodities and other services prohibitively expensive.