Which of the following policies could lead to a deadweight loss?
A) Price ceilings
B) Price floors
C) Policies prohibiting human cloning
D) all of the above
E) A and B only

Question

Quizplus · Accepted Answer

Price ceilings and price floors are government-imposed price controls that can lead to deadweight loss. Deadweight loss is a loss of economic efficiency that occurs when the quantity of a good or service produced and consumed is below or above the optimal level.

Which of the Following Policies Could Lead to a Deadweight