In response to a shortage caused by the imposition of a binding price ceiling on a market,
A)price will no longer be the mechanism that rations scarce resources.
B)long lines of buyers may develop.
C)sellers could ration the good or service according to their own personal biases.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A binding price ceiling leads to shortages, causing non-price rationing mechanisms like long lines and seller biases to emerge.

In Response to a Shortage Caused by the Imposition of a Binding