The difference between quantity restrictions and price ceilings as to their effect on the market is that
A) only price ceilings make the market inefficient.
B) only quantity restrictions make the market inefficient.
C) while some consumers gain from price ceilings, no consumers gain from quantity restrictions.
D) while price ceilings are efficient, quantity restrictions are not.

Question

Quizplus · Accepted Answer

Price ceilings can benefit some consumers by making goods available at lower prices than they would be in an unrestricted market, allowing them to purchase goods they might not otherwise afford. Quantity restrictions, however, typically do not provide a similar benefit to consumers; instead, they limit the availability of goods, which can lead to inefficiencies such as shortages without directly benefiting consumers through lower prices.

The Difference Between Quantity Restrictions and Price Ceilings as to Their