When a binding price ceiling is imposed on a market to benefit buyers,
A)every buyer in the market benefits.
B)every buyer and seller in the market benefits.
C)every buyer who wants to buy the good will be able to do so,but only if he waits in long lines.
D)some buyers will not be able to buy any amount of the good.

Question

Quizplus · Accepted Answer

When a binding price ceiling is imposed, the price of the good is forced to be below the market equilibrium price. This creates a situation where the quantity demanded exceeds the quantity supplied, leading to excess demand or a shortage. Some buyers will not be able to buy any amount of the good because sellers may run out of stock or ration the available quantity, leading to long waiting times or no access to the good. Therefore, the benefit of a price ceiling to buyers is limited to those who can access and purchase the good, while others suffer from the unintended consequences of the policy.

When a Binding Price Ceiling Is Imposed on a Market