If a government price control succeeds in affecting price, it can be expected to lead to a corresponding
A) decrease in the quantity of sales only if the price is forced down.
B) decrease in the quantity of sales if the price is forced down and an increase in the volume of sales if the price is forced up.
C) decrease in the quantity of sales whether the price is forced up or down.
D) increase in the quantity of sales whether the price is forced up or down.

Question

Quizplus · Accepted Answer

Price controls, such as price ceilings or floors, can lead to a decrease in the quantity of sales due to resulting shortages or surpluses, regardless of whether the price is forced up or down.

If a Government Price Control Succeeds in Affecting Price, It