Which of the following can create a deadweight loss?
i.price supports
ii.price floor
iii.price ceiling
A) i only
B) i and iii
C) ii and iii
D) i, ii and iii
E) i and ii

Question

Quizplus · Accepted Answer

All three options, price supports, price floors, and price ceilings, can create a deadweight loss by distorting market equilibrium, leading to overproduction or underproduction relative to the efficient market outcome.

Which of the Following Can Create a Deadweight Loss