The list of problems that can be triggered by price ceilings does NOT include
A)shortages.
B)reduced incentive for efficient production.
C)less incentive for maintaining product quality.
D)reduced demand.

Question

Quizplus · Accepted Answer

Price ceilings typically lead to shortages, reduced incentive for efficient production, and less incentive for maintaining product quality. However, reduced demand is not a problem caused by price ceilings; in fact, demand may increase due to the lower prices resulting from the price ceiling.

The List of Problems That Can Be Triggered by Price