Why does a shortage that occurs under a binding price ceiling decrease over time?
A) Demand becomes more elastic.
B) Demand becomes more inelastic.
C) Demand and supply both become more elastic.
D) Demand and supply both become more inelastic.
E) Demand becomes more elastic, but supply becomes more inelastic.

Question

Quizplus · Accepted Answer

Over time, both demand and supply can become more elastic as consumers and producers adjust to the price ceiling, leading to a reduction in the shortage.

Why Does a Shortage That Occurs Under a Binding Price