Price ceilings generally do not lead to which of the following?
A)Persistent shortages
B)A reduction in the quality of the good
C)An increase in the number of units purchased
D)The development of black markets

Question

Quizplus · Accepted Answer

Price ceilings often lead to persistent shortages, a reduction in the quality of the good, and the development of black markets as suppliers are unable to supply the market with the desired quantity at the low price. However, price ceilings do not typically increase the number of units purchased as demand still outweighs supply, and consumers may not be able to afford the quality and quantity they desire.

Price Ceilings Generally Do Not Lead to Which of the Following