When government imposes price controls in a market,
A) non-price factors become more important in the rationing of the good.
B) efficiency in the market is enhanced.
C) shortages and surpluses are eliminated.
D) buyers and sellers both become better off.

Question

Quizplus · Accepted Answer

Price controls can lead to shortages or surpluses, making non-price factors like waiting time or favoritism more important in allocating goods.

When Government Imposes Price Controls in a Market