All of the following are true of a price ceiling except which one?

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A price ceiling sets a maximum price that can be charged for a good or service. This means that the price cannot exceed a certain level, which can often result in a shortage. Consumers may be willing to buy more of a product than is available at the price ceiling, leading to excess demand. However, a price ceiling does not cause a surplus in the market. Instead, it can lead to a situation where suppliers are not willing to produce as much of the product as they would at a higher price, leading to a shortage. Price ceilings can also create deadweight losses by reducing the amount of trade that occurs in the market, and can lead to black markets as consumers seek to purchase the product at a higher price outside of the price ceiling.

All of the Following Are True of a Price Ceiling