Which of the Following Is NOT True When Market Distortions

question 188

Multiple Choice

Which of the following is NOT true when market distortions (e.g. ,price ceilings,price floors,or taxes) are introduced into the market?

• A) Total economic surplus is reduced.
• B) A deadweight loss of some magnitude occurs.
• C) Trades that should occur do not or trades that should not occur do.
• D) Equity is always improved.
• E) Efficiency is reduced