When an Effective Price Ceiling Causes a Shortage, Some of the Buyers

question 258

Multiple Choice

When an effective price ceiling causes a shortage, some of the buyers who value the good the most may not be able to get the good. Why does this occur?

• A) The highest-value users cannot outbid the lower-valued users and so the seller cannot distinguish between them.
• B) The highest-value users are eliminated from the market due to the price ceiling.
• C) The price ceiling causes the price to rise so high that even the highest-value users cannot afford the good.
• D) The government purchases most of the goods.

---

Definitions:

Stiff Neck

A condition characterized by pain and difficulty in moving the neck, often due to muscle strain or tension.

Sensitivity

The ability to detect or respond to slight changes, signals, or influences.

HIV

Human Immunodeficiency Virus, a retrovirus that attacks the immune system and can lead to AIDS (Acquired Immunodeficiency Syndrome) if not treated.

United States

A country located in North America, known for its significant economic, political, and cultural influence worldwide.