Queuing Time spent in line imposes an opportunity cost on buyers. The nonpecuniary price is the opportunity cost of acquiring the item through line standing. Instead of paying a higher money price, buyers bid up the full price by standing on line for longer periods of time and incurring a higher nonpecuniary price. New equilibrium where full price has risen so as to reduce the quantity demanded to the quantity supplied at the price ceiling. Welfare effects of price ceilings.
Price ceiling reduces the equilibrium quantity.
The lower quantity results in lower consumer surplus lower producer surplus Price ceilings result in a net loss in welfare. Given shortage, firms can choose how they will discriminate. Regular customers often benefit. Price floors are legislatively imposed minimum prices. Set above equilibrium price to be effective.