Multiple Choice
When an effective price ceiling causes a shortage, some of thebuyers who value the good the most may not be able to get thegood. Why does this occur?
A) The highest value users cannot outbid the lower valued users and so the seller cannot distinguish between them.(True
Answer ) Correct
B) The highest value users are eliminated from the market due to the price ceiling.
C) The price ceiling causes the price to rise so high that even the highest value users cannot afford the good.
D) The government purchases most of the goods.
Correct Answer:
Verified
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