Governments continue to impose price controls. Which of the following is NOT a valid reason for this?
A) Some people do benefit from such price controls.
B) People fear that prices will change dramatically if the price controls are removed.
C) It is politically expedient to enact regulations that benefit influential voting groups.
D) Price controls are always effective.

Question

Quizplus · Accepted Answer

Price controls are not always effective; they can lead to shortages, surpluses, and other market distortions.

Governments Continue to Impose Price Controls