Suppose the Government Introduces a Ceiling on the Fees That

question 80

Multiple Choice

Suppose the government introduces a ceiling on the fees that lawyers are permitted to charge.This fee ceiling

• A)is always inefficient.
• B)results in an inefficient use of resources when the ceiling is above the equilibrium fee.
• C)results in an efficient use of resources when the ceiling is above the equilibrium fee.
• D)results in an efficient use of resources when the ceiling is below the equilibrium fee.
• E)is always efficient.

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