Consider the Following Statements When Answering This Question: I

question 129

Multiple Choice

Consider the following statements when answering this question: I. Overall, the sick will always gain from a price ceiling on prescription drugs.
II) The reduction of supply caused by the imposition of a price ceiling is greater the more inelastic the market supply curve.

• A) I and II are true.
• B) I is true, and II is false.
• C) I is false, and II is true.
• D) I and II are false.