-Government imposed price controls often lead to
A) illegal trades of the good.
B) the most efficient use of resources.
C) the equilibrium solution in terms of price and quantity.
D) maximization of profits.

Question

-Government imposed price controls often lead to
A) illegal trades of the good. 
B) the most efficient use of resources. 
C) the equilibrium solution in terms of price and quantity. 
D) maximization of profits.

Quizplus · Accepted Answer

Price controls can lead to shortages or surpluses, which often result in the emergence of black markets or illegal trades as buyers and sellers seek to circumvent the imposed limits.

-Government Imposed Price Controls Often Lead to