Higher efficiency in the economy can be reached if prices are held low by law.

Question

Quizplus · Accepted Answer

Holding prices low by law can lead to a variety of economic problems, including shortages, reduced quality, and decreased incentive for producers to innovate and improve efficiency. In a market-based economy, prices are determined by supply and demand, and allowing them to fluctuate freely can lead to a more efficient allocation of resources.

Higher Efficiency in the Economy Can Be Reached If Prices