You are the president of the United States.In an attempt to make prescription drug prices cheaper,you have imposed a binding price ceiling on drugs.What would you expect your critics to say?
A) The binding price ceiling will encourage companies to overproduce drugs and will result in waste.
B) The binding price ceiling will discourage patients from obtaining the drugs they need.
C) The binding price ceiling will increase the likelihood that consumers will obtain needed drugs on the black market.
D) The binding price ceiling will cause firms to spend too many resources on the research and development of new drugs.
E) The binding price ceiling will cause firms to spend too much time making a drug without any flaws.

Question

Quizplus · Accepted Answer

A binding price ceiling set below the equilibrium price can lead to shortages, prompting consumers to seek drugs on the black market.

You Are the President of the United States