Which inefficiency is NOT caused by binding price ceilings?
A)inefficient allocation to consumers
B)wasted resources
C)potential illegal activity
D)inefficient allocation of sales among sellers

Question

Quizplus · Accepted Answer

Binding price ceilings can lead to inefficient allocation to consumers, wasted resources, and potential illegal activity due to the creation of black markets or under-the-table deals. However, they do not inherently cause inefficient allocation of sales among sellers; this issue is more associated with price floors or other market interventions.

Which Inefficiency Is NOT Caused by Binding Price Ceilings