Government intervention in the form of price floors or price ceilings will:
A)always enhance the efficiency of the market.
B)result in either surpluses or shortages.
C)move the market toward its equilibrium quantity more quickly.
D)often be seen as necessary to decrease the existence of black markets.

Question

Quizplus · Accepted Answer

Price floors and price ceilings disrupt the natural equilibrium of supply and demand, which can result in either surpluses (when there is excess supply) or shortages (when there is excess demand).

Government Intervention in the Form of Price Floors or Price