The imposition of a binding price ceiling on a market causes
A)quantity demanded to be greater than quantity supplied.
B)quantity demanded to be less than quantity supplied.
C)quantity demanded to be equal to quantity supplied.
D)the price of the good to be greater than its equilibrium price.

Question

Quizplus · Accepted Answer

A binding price ceiling, set below the market equilibrium price, results in a shortage where the quantity demanded exceeds the quantity supplied.

The Imposition of a Binding Price Ceiling on a Market