Price ceilings which lead to shortages will impose costs on society because they:

Question

Quizplus · Accepted Answer

Price ceilings which lead to shortages will result in long waiting lines and a smaller quantity offered on the market. Additionally, when there is a shortage, it creates an incentive for suppliers to sell their products on the black market, which results in higher prices than what the market-determined price would be. All of these factors impose costs on society.

Price Ceilings Which Lead to Shortages Will Impose Costs on Society