Which of the following is a potential result of a price ceiling?
A) excess supply
B) long lines
C) higher quality output
D) higher marginal costs

Question

Quizplus · Accepted Answer

A price ceiling is a legal maximum price that can be charged for a good or service. If the price ceiling is below equilibrium price, it will create a shortage of the good or service, leading to long lines or waiting lists. The other options are not consistent with the effects of a price ceiling.

Which of the Following Is a Potential Result of a Price