A price ceiling on a good often results in:
A)a black market,or underground transactions of the good.
B)a surplus of the product.
C)more communication between buyers and sellers about the appropriate price.
D)a more efficient allocation of the good to buyers.

Question

Quizplus · Accepted Answer

A price ceiling creates a situation where the price of a good is set below the market equilibrium, leading to a shortage of the good. This shortage creates an incentive for buyers and sellers to engage in black market transactions to obtain the good at a higher price.

A Price Ceiling on a Good Often Results In