According to the textbook, government price controls fail because:
A)they are not enforced.
B)legislation cannot repeal basic economic motives.
C)bureaucrats lack accurate market data.
D)firms ignore the restrictions.

Question

Quizplus · Accepted Answer

Government price controls fail because they cannot repeal basic economic motives such as supply and demand. Price controls create shortages or surpluses, which lead to inefficiencies in the market. Additionally, price controls can lead to black markets and decreased quality of goods/services. Therefore, it is not due to enforcement, lack of market data, or firms ignoring the restrictions.

According to the Textbook, Government Price Controls Fail Because