Government price controls:

Question

Government price controls:​

Quizplus · Accepted Answer

Government price controls interfere with the market's ability to properly allocate resources by preventing prices from reflecting relative scarcities. This can lead to inefficiencies and distortions in the market.

Answer: B 
 Price controls typically result in unintended consequences, such as shortages or reduced quality of goods, which ultimately impose costs on the people they are meant to help.

Answer: D 
 Government price controls that force prices below market equilibrium artificially lower prices, which results in a shortage of the good or service. This leads to decreased production and consumption of the good or service, disrupting the market.

Answer: E 
 This statement is false. Government price controls actually decrease market efficiency.

Government Price Controls:​

Government Price Controls: