The problems created by price controls become greatest as time goes by when:
A) supply becomes more inelastic and demand becomes more elastic.
B) demand becomes more in elastic and supply becomes more elastic.
C) demand and supply become more elastic.
D) demand and supply become more inelastic.

Question

Quizplus · Accepted Answer

As time goes by, both demand and supply tend to become more elastic, meaning that consumers and producers can more easily change their behavior in response to price changes, exacerbating the distortions and inefficiencies caused by price controls.

The Problems Created by Price Controls Become Greatest as Time