Inefficient allocations of goods to consumers often result from:
A)price ceilings.
B)producer surpluses.
C)increases in income.
D)market transactions.

Question

Quizplus · Accepted Answer

Price ceilings can lead to inefficient allocations of goods to consumers because they artificially set the price below the market equilibrium, causing shortages and rationing. This means that some consumers who are willing and able to pay the market price are unable to obtain the goods, while others who are not as willing to pay get them instead. This can lead to a misallocation of resources and a deadweight loss to society.

Inefficient Allocations of Goods to Consumers Often Result From