Which of these is NOT correct? Price floors and price ceilings

Question

Quizplus · Accepted Answer

Price floors and price ceilings do not necessarily help a market balance the interests of sellers and buyers. In fact, they may create imbalances that benefit one group at the expense of the other. Price floors, for example, benefit sellers by setting a minimum price for a product, but they may create a surplus of goods and reduce demand from buyers who cannot afford the higher prices. Similarly, price ceilings benefit buyers by setting a maximum price for a product, but they may create a shortage of goods and reduce supply from sellers who cannot afford to produce or sell at the lower prices. So, while price floors and price ceilings may be instituted by government and may interfere with the process leading to market equilibrium, they do not necessarily help balance the interests of sellers and buyers.

Which of These Is NOT Correct? Price Floors and Price