When price ceilings are effective, gains from trade are usually lower than if the available goods are allocated to the highest value uses.

Name: When price ceilings are effective, gains from trade are usually lower than if the available goods are allocated to the highest value uses.
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Price ceilings often result in shortages and rationing of goods, which leads to inefficient allocation and lower gains from trade since the goods are not distributed to the highest value uses.

When Price Ceilings Are Effective, Gains from Trade Are Usually