Final answer:
The total value of time wasted by buyers in a market with a price ceiling is calculated by adding the price buyers are willing to pay to the time price, and then multiplying by the quantity supplied, as shown in Option B.
Step-by-step explanation:
The calculation you are referring to aims to determine the total value of time wasted by buyers waiting in line due to a price ceiling. The correct formula to calculate this value is Option B: (price buyers are willing to pay + time price) × quantity supplied. Here, the price buyers are willing to pay represents the value of the good or service buyers would agree to in the absence of price control, time price is the value of the time spent waiting, and quantity supplied is the number of units available at the controlled price.
This formula accounts for the fact that due to the price ceiling, which is a legal maximum price set below the equilibrium price, there is often a shortage of goods since the quantity demanded exceeds the quantity supplied. This leads to non-price rationing mechanisms, like long lines, where a buyer's time becomes part of the cost of obtaining the good.