Roland is the president of the United States.In an attempt to make prescription drug prices cheaper,he has imposed a binding price ceiling on drugs.What would he expect his critics to say?

Question

Quizplus · Accepted Answer

A binding price ceiling set below the equilibrium price can lead to shortages as the price is artificially kept lower than what the market would naturally set. This can result in insufficient supply to meet demand, and one common consequence of such shortages is that consumers may turn to the black market to obtain needed drugs.

Roland Is the President of the United States