Which of the following is a likely outcome of price controls and quota limits?
A)prices higher than the market equilibrium price
B)illegal activity as people invent ways to get around the market constraint
C)shortages and units of output that must be disposed of
D)shortages and inefficiency created by buyers searching for units of the good

Question

Quizplus · Accepted Answer

Price controls and quota limits often lead to illegal activities as people try to circumvent the constraints imposed by these controls.

Which of the Following Is a Likely Outcome of Price