Which of the following can occur if price controls are imposed on a product?
A)Persistent shortages
B)Illegal markets
C)Illicit channels of distribution
D)Industry investment slows or stops
E)All of these responses are correct.

Question

Quizplus · Accepted Answer

All of these responses are correct. When price controls are imposed on a product, it can lead to persistent shortages, illegal markets, illicit channels of distribution, and industry investment slowing or stopping. The market may not be able to efficiently balance the supply and demand of the product, leading to unintended consequences. As a result, all of the options listed can occur when price controls are imposed on a product.

Which of the Following Can Occur If Price Controls Are