Common rationing mechanisms under price ceilings include waiting in long lines and biases of the sellers.

Question

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When price ceilings are put in place, demand for the good or service often exceeds the supply at the capped price. This can lead to long lines or waiting lists, as the seller attempts to allocate the scarce resource. Additionally, sellers may have biases or preferences for certain buyers, which can further distort the distribution of the good or service.

Common Rationing Mechanisms Under Price Ceilings Include Waiting in Long