How do price ceilings and floors contribute to market inefficiencies? Provide a real-world example.

• A. They prevent the market from reaching equilibrium, leading to either shortages or surpluses. For example, rent control can lead to housing shortages.
• B. They ensure that all consumers can afford goods and services.
• C. They increase the overall efficiency of the market by stabilizing prices.
• D. They have no significant impact on market efficiency.

Answer: (A)