Lines, ration coupons, and black markets are symptoms of a

Question

Quizplus · Accepted Answer

Ration coupons and black markets are typical consequences of a price ceiling, which is a government-imposed limit on the price of a good or service that results in a shortage. Lines form when demand exceeds supply at the legal price. A price floor, which is a minimum price set above the equilibrium price, is more likely to result in excess supply and surpluses rather than the other symptoms described. A barter economy implies the absence of a medium of exchange, such as money, but it is not related to the given symptoms. The notion of a free market lacks the specificity required to answer the question unequivocally.

Lines, Ration Coupons, and Black Markets Are Symptoms of a