In an ideal world during a health crisis, both suppliers and consumers would behave in an altruistic manner, and suppliers would provide goods at a competitive market price. However, during the pandemic of 2020, neither consumers nor suppliers were acting as they would in a normal market, which led to government intervention in the form of price controls. More than 30 states enacted price-gouging laws (effectively price ceilings) in an effort to ease perceived burdens on consumers. Which of the following could occur due to a price ceiling, and which would not?

In an ideal world during a health crisis, both suppliers and consumers would behave in an altruistic manner, and suppliers would provide goods at a competitive market price. However, during the pandemic of 2020, neither consumers nor suppliers were acting as they would in a normal market, which led to government intervention in the form of price controls. More than 30 states enacted price-gouging laws (effectively price ceilings) in an effort to ease perceived burdens on consumers. Which of the following could occur due to a price ceiling, and which would not? Unintended Consequence Drag appropriate answer(s) here Consumers could experience a temporary Consumers could be able to purchase as shortage of hand sanitizer. much of a good as they are willing and able to at a reduced price. Suppliers could substitute cheaper ingredients, thereby reducing quality. Suppliers could hire additional workers in order to meet the market demand. Drag appropriate answer(s) here