Price ceilings and price floors
A) shift demand and supply curves and therefore have no effect upon the rationing function of prices.
B) interfere with the rationing function of prices.
C) make the rationing function of free markets more efficient.
D) cause surpluses and shortages,respectively.

Question

Quizplus · Accepted Answer

Price ceilings and floors interfere with the natural equilibrium of supply and demand, disrupting the rationing function of prices by preventing them from reaching their natural levels.

Price Ceilings and Price Floors