Which of the following best represents the misallocation of resources that would occur under a price ceiling on bottled water following a major hurricane?
A) Bottles of water sit on the shelves because nobody can afford it.
B) A family in a distant state takes time off work to bring bottled water to the hurricane-ravaged area.
C) A family in a distant state gives bottled water to its dog, but a family in the hurricane area cannot find bottled water to drink.
D) Families in the hurricane area brush their teeth with bottled water but cannot find enough to drink.

Question

Quizplus · Accepted Answer

A price ceiling can lead to shortages, where those in need cannot access the product, while others who do not need it as urgently can still obtain it.

Which of the Following Best Represents the Misallocation of Resources