Do Price Ceilings Misallocate Resources

question 151

Multiple Choice

Do price ceilings misallocate resources?

• A) Yes, because people who value the good the most are unable to bid it away from low-valued uses.
• B) Yes, because people who value the good the least are unable to afford the good.
• C) No, because the good is still allocated based on willingness to pay.
• D) No, because the rich and poor alike stand an equal chance of getting the good.

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