Suppose the government introduces a ceiling on the fees that lawyers are permitted to charge.This fee ceiling
A)is always inefficient.
B)results in an inefficient use of resources when the ceiling is above the equilibrium fee.
C)results in an efficient use of resources when the ceiling is above the equilibrium fee.
D)results in an efficient use of resources when the ceiling is below the equilibrium fee.
E)is always efficient.

Question

Quizplus · Accepted Answer

A price ceiling above the equilibrium fee does not affect the market, allowing it to operate efficiently as if there were no ceiling.

Suppose the Government Introduces a Ceiling on the Fees That