If the equilibrium price of good X is $5 and a price ceiling is imposed at $4, the result will be a(n):
A) accumulation of inventories of unsold gas.
B) shortage.
C) surplus.
D) all of these.

Question

Quizplus · Accepted Answer

When a price ceiling is imposed below the equilibrium price, it creates a situation where demand exceeds supply. This leads to a shortage of the good. The other options are not applicable in this scenario.

If the Equilibrium Price of Good X Is $5 and a Price