Price ceilings are intended to address the problem of
A)Inefficiency in production.
B)Inequity in the distribution of goods and services.
C)Business bankruptcies.
D)Shortages.

Question

Quizplus · Accepted Answer

Price ceilings are implemented to make essential goods and services more affordable to lower-income individuals, addressing inequity in the distribution of goods and services. They are not primarily aimed at solving inefficiency in production, preventing business bankruptcies, or addressing shortages. In fact, price ceilings can sometimes lead to shortages when the price is set below the market equilibrium.

Price Ceilings Are Intended to Address the Problem of