Which of the following is a prominent argument against the use of price ceilings?

Question

Quizplus · Accepted Answer

Price ceilings lead to a decrease in total surplus because they create a shortage of goods or services at the artificially low price, leading to a decrease in the quantity supplied and an increase in the quantity demanded. This results in a decrease in producer surplus and a decrease in consumer surplus, ultimately resulting in a net loss of economic welfare. Therefore, option C is the correct answer. Options A and D are incorrect because they do not address the economic inefficiencies caused by price ceilings, and option B is not entirely accurate because it suggests that price ceilings lead to an increase in surplus, which is not always the case.

Which of the Following Is a Prominent Argument Against the Use