If the market price of salmon is $8.99 per pound but the government will not allow salmon farmers to charge more than $4.99 per pound of salmon,which of the following will happen?

Question

Quizplus · Accepted Answer

When the government sets a price ceiling below the market equilibrium price, in this case at $4.99 when the market price is $8.99, it results in a quantity demanded that exceeds the quantity supplied, creating an excess demand for salmon. This is because consumers will want to buy more salmon at the lower price, but producers will not be willing to supply enough at that price, leading to shortages.

If the Market Price of Salmon Is $8