If the government imposes an effective ________,a deadweight loss ________.
A) price floor; does not occur
B) price ceiling; does not occur
C) price ceiling; occurs
D) price support; does not occur
E) Both answers C and D are correct.

Question

Quizplus · Accepted Answer

An effective price ceiling is set below the equilibrium price, leading to a shortage and resulting in a deadweight loss due to the inefficient allocation of resources.

If the Government Imposes an Effective ________,A Deadweight Loss ________

If the Government Imposes an Effective ,A Deadweight Loss