Consider a market with a price ceiling below the equilibrium price.A rightward shift of the demand curve will likely ________.

Question

Quizplus · Accepted Answer

A rightward shift of the demand curve in a market with a price ceiling below equilibrium will increase the size of the deadweight loss because the quantity traded remains constrained by the ceiling, leading to a larger gap between the quantity demanded and the quantity supplied.

Consider a Market with a Price Ceiling Below the Equilibrium