A price ceiling that is set above the equilibrium price:
A)will lead to a black market.
B)will have no effect on the market.
C)will lead to excess supply in the market.
D)will lead to excess demand in the market.

Question

Quizplus · Accepted Answer

If the price ceiling is set above the equilibrium price, then it will have no effect on the market because the price is already below the ceiling.

A Price Ceiling That Is Set Above the Equilibrium Price