Which of these statements explains why price ceilings result in lost gains from trade?
A) Buyers and sellers want to trade, but the threat of fines or jail time prevents them from doing so.
B) Sellers want to trade, but buyers prefer the lower prices.
C) Buyers want to trade, but sellers are indifferent at the lower prices.
D) Neither buyers nor sellers want to trade subject to a price ceiling resulting in lost gains from trade.
Correct Answer:
Verified
Q94: Use the following to answer question 96:
Figure:
Q95: Price ceilings:
A) increase the gains from trade
Q96: Which statement is TRUE in a market
Q97: When an effective price ceiling causes a
Q98: In 1972-1973, the swimming pools in California
Q100: Deadweight loss is:
A) necessary to ensure that
Q101: Use the following to answer questions:
Figure: Price
Q102: Use the following to answer questions:
Figure: Price
Q103: Use the following to answer questions:
Figure: Price
Q104: Price controls cause resources to be misallocated
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