A state government is concerned about the rising prices that internet service providers are asking their customers to pay. The current price of high-speed internet access in the state is $120

Question

per month, but the government would like it to be lower. What price control could the government implement that would effectively lower the price of high-speed internet access?(1 point)
Responses

price floor above $120
price floor above 120 dollars

price ceiling above $120
price ceiling above 120 dollars

price floor below $120
price floor below 120 dollars

price ceiling below $120

Answer 1

To effectively lower the price of high-speed internet access from the current price of $120 per month, the government should implement a price ceiling below $120.

A price ceiling is a maximum price that can be charged for a good or service, and it aims to keep prices from rising above a certain level. By setting a price ceiling below the current price, the government can help ensure that internet service providers charge less than $120, thus lowering the cost for consumers.

So the correct response is:

price ceiling below $120.