Which of the Following Is NOT an Effect of a Price

question 6

Multiple Choice

Which of the following is NOT an effect of a price ceiling?

• A) surpluses
• B) misallocation of resources
• C) loss of gains from trade
• D) wasteful lineups

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a marketplace.

Quantity Supplied

Quantity Supplied refers to the amount of goods or services that sellers are willing and able to sell at a given price over a specified period of time.

Price Increase

When the cost of goods or services rises over a period.

Long Run

A period in economics where all factors of production can be adjusted, allowing firms to change their output levels based on market demands.