A price ceiling results in:
A) inefficiency resulting from overproduction of the good.
B) inefficiency because transactions are held below the equilibrium quantity.
C) a decrease in wasted resources, as consumers find such goods more easily.
D) surpluses in the market, which eventually lead to inefficient production costs.

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price causes a shortage, leading to inefficiency as the quantity of goods transacted is less than the equilibrium quantity.

A Price Ceiling Results In