Price controls may be thought of as
A) a restraint on the rationing function of prices.
B) useful tools that promote production.
C) necessary in market economies.
D) the freeing-up of free market forces.

Question

Quizplus · Accepted Answer

Price controls are restrictions on the prices that businesses can charge for their goods or services. They often lead to a distortion of the market and can result in shortages or surpluses. Price controls act as a restraint on the rationing function of prices, as they prevent prices from rising to balance supply and demand.

Price Controls May Be Thought of as