Price ceilings which lead to shortages will impose costs on society because they:
A) will lead to waiting lines.
B) may result in black market prices, which are higher than the market-determined price would be.
C) lead to a smaller quantity offered on the market.
D) do all of the above.

Question

Quizplus · Accepted Answer

Price ceilings can lead to waiting lines, black market prices, and a smaller quantity offered on the market, all of which impose costs on society. Waiting lines can result in wasted time and lost productivity, black market prices can be higher than the market-determined price, and a smaller quantity available on the market can lead to rationing and a loss of consumer surplus.

Price Ceilings Which Lead to Shortages Will Impose Costs on Society