A price ceiling set below an equilibrium price tends to cause persistent imbalances in the market because
A) Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage.
B) Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus.
C) Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage.
D) Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price results in a shortage because the quantity demanded exceeds the quantity supplied, and the price cannot rise to eliminate this shortage.

A Price Ceiling Set Below an Equilibrium Price Tends to Cause