A possible explanation for government price controls is that they
A)reflect the preferences of the consuming public.
B)benefit society.
C)benefit those with the greatest need.
D)permit some firms with political power to benefit, at a cost to society.
E)increase economic efficiency.

Question

Quizplus · Accepted Answer

Government price controls can often be driven by political forces and benefit certain firms or industries that have political power, while ultimately costing society as a whole. This may come at the expense of small businesses or consumers, who may end up paying more or receiving lower quality products/services as a result of the price controls.

A Possible Explanation for Government Price Controls Is That They