When several hurricanes hit Florida in 2004, a number of local governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. In the areas where the controls were imposed, they resulted in
A) an expanded availability of these badly needed products.
B) a reduced availability of these badly needed products.
C) an increase in the speed with which people recovered from the hurricanes.
D) a more efficient allocation of these goods for which price controls were in effect.

Question

Quizplus · Accepted Answer

Price controls, such as price ceilings, often lead to shortages because they prevent prices from rising to a level where supply meets demand. This results in a reduced availability of the controlled products.

When Several Hurricanes Hit Florida in 2004, a Number of Local