A government decides to implement a price ceiling on essential goods to make them more affordable for consumers. Which of the following outcomes best describes the effect of this intervention on market efficiency?

When a government sets a price ceiling on essential goods, it means they limit how high the price can go. This is done to help consumers afford important items like food and medicine. However, while it makes these goods cheaper, it can also lead to shortages because suppliers may not want to sell their products at lower prices. For example, if the price of bread is capped and bakers can’t cover their costs, they might produce less bread, leading to empty shelves in stores. Overall, this intervention can reduce market efficiency because it disrupts the balance between supply and demand, resulting in less availability of the goods.