An effective price ceiling is best defined as a price:
A) imposed by government below equilibrium price.
B) imposed by government above equilibrium price.
C) higher than any consumer is willing to pay.
D) lower than any supplier is willing to sell.

Question

Quizplus · Accepted Answer

An effective price ceiling is set below the equilibrium price, leading to a shortage as the quantity demanded exceeds the quantity supplied at that price.

An Effective Price Ceiling Is Best Defined as a Price