select all that apply\nin which of the following situations do governments intervene to prevent prices from…

select all that apply\nin which of the following situations do governments intervene to prevent prices from rising above or falling below their equilibrium levels?\n□ prices are too high for consumers.\n□ prices are too low for firms.\n□ prices are too high for firms.\n□ prices are too low for consumers.\nneed help? review these concept resources.\nread about the concept

select all that apply\nin which of the following situations do governments intervene to prevent prices from rising above or falling below their equilibrium levels?\n□ prices are too high for consumers.\n□ prices are too low for firms.\n□ prices are too high for firms.\n□ prices are too low for consumers.\nneed help? review these concept resources.\nread about the concept

Answer

Brief Explanations:

Governments intervene when prices are too high for consumers (price - ceiling to protect consumers from high prices) and when prices are too low for firms (price - floor to protect firms from low revenues). High prices for firms are generally not a reason for intervention as firms benefit, and low prices for consumers are not a reason for preventing price - drops as consumers benefit.

Answer:

A. Prices are too high for consumers. B. Prices are too low for firms.