Which of the following statements is true about price ceilings?

Question

Quizplus · Accepted Answer

Price ceilings set a maximum price for a good or service, which can lead to shortages if the demand is higher than the supply at that price. To eliminate the excess demand, a non-price rationing system must be put in place, such as first-come, first-served or random allocation. Ration coupons are one method, but not the only one. Services can also be affected by price ceilings, not just goods, and price ceilings can sometimes lead to both shortages and surpluses, depending on the specific circumstances. Therefore, only statement B is accurate.

Which of the Following Statements Is True About Price Ceilings