In a competitive market,a binding price ceiling causes ________ by ________.
A) market efficiency; increasing the economic surplus of the last unit of output produced and consumed
B) market inefficiency; creating a deadweight loss in economic surplus
C) market efficiency; increasing the amount produced and consumed
D) market inefficiency; increasing the amount produced and consumed

Question

Quizplus · Accepted Answer

A binding price ceiling creates a situation where the market price is lower than the equilibrium price, leading to excess demand and a shortage of the product. This results in market inefficiency as the equilibrium quantity is not produced, and there is a deadweight loss in economic surplus.

In a Competitive Market,a Binding Price Ceiling Causes ________ by ________

In a Competitive Market,a Binding Price Ceiling Causes by