Question 40
MediumOriginal questionA price ceiling below the equilibrium price commonly leads to
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
The shortage means not everyone who wants the good at the ceiling price can get it.
The government rations it (as through ration shops), and some is sold illegally above the ceiling.
Worth noting
Unsold stocks come with a price floor, not a ceiling.
- Concept
- Effects of a price ceiling
- Typical timeTypical
- 70 s
- Your timeYours
- —
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