The Major Drawback of a Binding Price Ceiling Is

question 164

Multiple Choice

The major drawback of a binding price ceiling is:

• A)​it causes a surplus.
• B)​government regulations of this kind are difficult to enforce
• C)​it causes a shortage.
• D)​none of the above; there is no drawback.

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Definitions:

Hourly Wage

The amount of money paid for each hour of work.

Uglifruits

This term does not represent a known economic concept. NO.

Consumption Proportions

This term refers to the ratio in which different goods or services are consumed by individuals or within an economy.

Price Change

A fluctuation in the market price of a good or service over a specific period.