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.

The correct answer is letter "D": interfere with the rationing function of prices.

Explanation:

While talking about price floors and price ceiling, the rationing function of prices refers to the fact that both governmental measures are imposed to protect sellers and buyers from unfair practices driven by supply and demand. Thus, price floors protect producers from prices that could go below their production costs and price ceilings protect buyers from prices that could be set above their income.

The rationing function of prices can be also understood as the measures taken to discourage demand to keep resources to use them over a determined period.