Question

When the government imposes price floors or price​ ceilings, A. some people​ win, some people​ lose, and there is a loss of economic efficiency. B. some people​ win, some people​ lose, and there is an increase in economic efficiency. C. everyone​ wins, goods and services distribution is more​ just, and there is a loss of economic efficiency. D. everyone​ wins, goods and services distribution is more​ just, and there is an increase in economic efficiency.

Answer 1

Answer:

The answer is: A) some people​ win, some people​ lose, and there is a loss of economic efficiency.

Explanation:

When the government imposes a price ceiling, some consumers win since they buy cheaper products (lower than equilibrium price) but suppliers lose. Inf the government decides a price floor is better, then customers will lose and some suppliers will win (prices are higher than equilibrium price).

Both price ceilings and price floors cause deadweight loss, decreasing economic efficiency.