A price ceiling will have NO immediate effect if:
A)it is set above the equilibrium price.
B)the equilibrium price is above the price ceiling.
C)it is set below the equilibrium price.
D)it creates a shortage.

Question

Quizplus · Accepted Answer

If the price ceiling is set above the equilibrium price, it is irrelevant as it is not affecting the market price. The market price will still be determined by supply and demand forces, and the price ceiling becomes redundant.

A Price Ceiling Will Have NO Immediate Effect If