A surplus that results from a price ceiling creates inefficiencies in all of the following EXCEPT _____________________.

The temptation to break the law by selling above the legal price.

The temptation to break the law by selling below the legal price.

Inefficiently low quality.

Wasted resources as buyers increase time and expenses to acquire the scarce item.

1 answer

A surplus that results from a price ceiling creates inefficiencies in all of the following EXCEPT the temptation to break the law by selling below the legal price.

In the context of a price ceiling, the legal price is set below the equilibrium price, leading to a shortage rather than a surplus. Thus, a price ceiling typically does not create a surplus; instead, it creates inefficiencies such as lower quality goods and wasted resources, but not in the form of a temptation to sell below the legal price.