Price ceilings will impose costs on society because they:
A) will eliminate long waiting lines.
B) may result in black market prices, which are lower than the market-determined price would be.
C) lead to a smaller quantity offered on the market.
D) help businesses instead of consumers.

Question

Quizplus · Accepted Answer

Price ceilings set below the equilibrium price lead to shortages, as the quantity demanded exceeds the quantity supplied, resulting in a smaller quantity offered on the market.

Price Ceilings Will Impose Costs on Society Because They