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Price Ceilings and Floors: Effects

APMICR-JESG8S

Which of the following do economists expect to occur when the government sets effective price ceilings or floors in markets that are currently allocatively efficient?

A

Buyers will get incorrect information about the scarcity of products.

B

Sellers will get incorrect information about the scarcity of products.

C

Markets will become less efficient.

D

The quantity demanded and quantity supplied in those markets will not balance.

E

All of the above