Lines, ration coupons, and black markets are byproducts of a
A)price floor.
B)price ceiling.
C)free market.
D)barter economy.

Question

Quizplus · Accepted Answer

Lines, ration coupons, and black markets are all outcomes of a price ceiling, which sets a maximum price that can be charged for a good or service. When the price ceiling creates a shortage, consumers may have to wait in lines to purchase the good or be issued ration coupons to ensure fair distribution. Alternatively, a black market may emerge where the good is sold at a higher price than the legal maximum. A price floor, on the other hand, sets a minimum price that can be charged and may lead to surpluses of the good. A free market operates without government intervention in setting prices, and a barter economy relies on trading goods and services without the use of money.

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