Which is NOT a correct statement about the undesirable side effects of a quantity control?
A) Quantity controls do not lead to deadweight loss.
B) Some mutually beneficial transactions do not occur because of quantity controls.
C) Quantity controls provide incentives for illegal activities.
D) Quantity controls cause a wedge between the demand price and supply price.

Question

Quizplus · Accepted Answer

Quantity controls do lead to deadweight loss because they prevent mutually beneficial transactions from occurring, which results in a loss of economic efficiency.

Which Is NOT a Correct Statement About the Undesirable Side