Question

Which is not an inefficiency caused by binding price ceilings? illegal activity inefficient allocation to consumers wasted resources inefficient allocation of sales among sellers?

Answer 1

Answer: inefficient allocation of sales among sellers

Explanation:

A binding price ceiling is one in which the government imposes a legal minimum price that can be charged for a good, when the equilibrium price is below it. The ceiling creates a shortage in the market which leads to illegal activities, wasted resources and inefficient allocation to consumers.

However, it does not lead to inefficient allocation of sales among sellers.