A Binding Price Floor Is Likely to Cause Deadweight Loss

Multiple Choice

A binding 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 transacted is less than the equilibrium quantity transacted.
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.