Price ceilings do not have much effect:
A) in times of high inflation.
B) ever.
C) when market prices are at or below the ceiling.
D) in nonmarket economies.

Question

Quizplus · Accepted Answer

Price ceilings only become effective when market prices are above the ceiling, which leads to a shortage of the product. In contrast, when market prices are at or below the ceiling, there is no effect on the market price. Therefore, the best choice is (C).

Price Ceilings Do Not Have Much Effect