Which of the following is an example of an unintended consequence of price controls?
A)First time tax credits that cause more home sales
B)A price ceiling on gasoline that causes a gas shortage
C)Increased parking fines that lead to fewer violators
D)Higher minimum wages resulting in an increase in employment among teenagers
E)Subsidies resulting in a decrease in the cost of taxpayers

Question

Quizplus · Accepted Answer

Price ceilings on gasoline can lead to shortages because suppliers are often unable or unwilling to supply the quantity of gasoline demanded at the low price mandated by the government. This can result in long lines, rationing, or even black markets.

Which of the Following Is an Example of an Unintended