The statement that "price controls do not eliminate competition":
A) is false because price controls prevent rich consumers from outbidding poor consumers for goods and services.
B) is false because firms are no longer allowed to exploit consumers by charging higher prices after hurricanes or major snowstorms.
C) reflects the idea that consumers will compete for price-controlled products by waiting in line and offering bribes to sellers.
D) means that sellers will increase the quality of their product when they cannot legally increase their prices.

Question

Quizplus · Accepted Answer

Price controls can lead to non-price competition, such as consumers competing through waiting in line or offering bribes, rather than eliminating competition entirely.

The Statement That "Price Controls Do Not Eliminate Competition