Answer :
Final answer:
The federal government's upper limit on human organ prices is known as a price ceiling, which prevents prices from rising above a certain level. A price ceiling differs from a price floor, which prevents prices from falling below a certain level, and can often result in persistent shortages when set below equilibrium. Therefore, the correct option is b. Price ceiling
Explanation:
The federal government placed an upper limit on human organ prices and this is known as a price ceiling. Price controls enacted by the government have two main types: price ceilings and price floors. A price ceiling is a limit on how high a price for a product or service can be set, to prevent it from rising beyond that point. Conversely, a price floor is a limit on how low a price can be set, to prevent it from falling below that level. An example of a price ceiling is rent control, where the government sets a maximum price for rentals to make housing more affordable. When a price ceiling is set below the equilibrium price, it typically results in a persistent shortage.