Question content area

Part $1$

Why do some consumers tend to favor price controls while others tend to oppose$$ them?

Part $2$

A$.$

Price floors generate shortages.$$ Consequently, the consumers who obtain the product at a lower price$$ win, but other consumers will lose because they would like to purchase the product but are unable to because of a shortage.

B$.$

Price ceilings generate surpluses.$$ Consequently, consumers who obtain the product at a lower price$$ win, but consumers who obtain the product at a higher price lose.

C$.$

Price ceilings generate shortages.$$ Consequently, consumers surplus$$ increases, but producer surplus decreases.

D$.$

Price ceilings generate shortages.$$ Consequently, the consumers who obtain the product at a lower price$$ win, but other consumers will lose because they would like to purchase the product but are unable to because of a shortage.

E$.$

None of the above.