Which of the following would occur following the imposition of a price ceiling that sets the price of a good (for example, rental housing) below the market equilibrium?
A) an improvement in the quality of the good
B) an increase in the amount of the good available
C) a shortage of the good
D) a surplus of the good

Question

Quizplus · Accepted Answer

When a price ceiling is imposed that is below the market equilibrium, the demand for the good will exceed the supply, leading to a shortage of the good. This means that consumers will not be able to purchase the amount of the good they desire at the lower price, and some may go without or resort to other, potentially inferior, alternatives.

Which of the Following Would Occur Following the Imposition of a Price