In competitive markets,price floors and price ceilings usually lead to
A)shortages.
B)a reduction in quantities exchanged.
C)surpluses.
D)production control by the government.
E)more equitable distributions of commodities.

Question

Quizplus · Accepted Answer

Price floors and ceilings disrupt the natural equilibrium of supply and demand, often resulting in reduced quantities exchanged due to either excess supply (surplus) or excess demand (shortage).

In Competitive Markets,price Floors and Price Ceilings Usually Lead to