Price floors and ceiling prices both

A) cause shortages.
B) cause surpluses.
C) cause the supply and demand curves to shift until equilibrium is established.
D) interfere with the rationing function of prices.

Price Floors

A government- or authority-imposed minimum price that sellers must charge for a good or service, essentially preventing prices from falling below this set level.

Ceiling Prices

Maximum prices set by the government on certain goods and services to prevent excessive pricing during shortages or inflationary periods.

Rationing Function

The ability of market prices to distribute scarce goods and services among consumers based on willingness and ability to pay.