Unlike Excise Taxes, Price Ceilings Create No Deadweight Loss

question 38

True/False

Unlike excise taxes, price ceilings create no deadweight loss.

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Definitions:

Price Floor

A legal minimum price below which a good or service cannot be sold.

Pharmaceutical Companies

Pharmaceutical companies are businesses licensed to research, develop, market, and distribute drugs, typically in the context of healthcare.

Competitive Market

A market structure where numerous buyers and sellers interact, and no single buyer or seller can influence the price of a good or service, leading to an efficient allocation of resources.

Drug Sales

The commercial activity of selling medications, including both prescription drugs and over-the-counter products.