The Presence of a Price Control in a Market for a Good

Multiple Choice

The presence of a price control in a market for a good or service usually is an indication that

A) an insufficient quantity of the good or service was being produced in that market to meet the public's need.
B) the usual forces of supply and demand were not able to establish an equilibrium price in that market.
C) policymakers believed that the price that prevailed in that market in the absence of price controls was unfair to buyers or sellers.
D) policymakers correctly believed that price controls would generate no inequities of their own once imposed.