Multiple Choice
A price floor is likely to cause deadweight loss because:
A) buyers incur additional search costs looking for the scarce good.
B) the quantity of the good is less than the equilibrium quantity.
C) a black market emerges and the good sells at prices above the price floor.
D) some buyers who want to buy at the controlled price are unable to find a seller willing to sell at that price.
Correct Answer:

Verified
Correct Answer:
Verified
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