In a market with a price ceiling which of the following is TRUE?
A) Buyers and sellers experience unexploited gains from trade.
B) Resources are allocated to their most efficient uses.
C) The supply of goods is sold by the sellers with the lowest costs.
D) The supply of goods is bought by the buyers with the highest willingness to pay.

Question

Quizplus · Accepted Answer

A price ceiling can lead to unexploited gains from trade because it prevents the market from reaching equilibrium, where supply equals demand, leading to shortages and inefficiencies.

In a Market with a Price Ceiling Which of the Following