Price floors and ceiling prices:

A) both cause shortages.
B) both 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

Minimum legally established prices below which a good or service cannot be sold, typically set by government to protect producers.

Ceiling Prices

are maximum legal prices set by authorities for particular goods or services to prevent them from becoming too expensive during shortages or high demand periods.

Rationing Function

The process by which scarce goods and services are distributed among competing users.