If the equilibrium price is $1.00, a shortage will occur if a price ceiling of $2.50 is implemented.

Name: If the equilibrium price is $1.00, a shortage will occur if a price ceiling of $2.50 is implemented.
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Question

Quizplus · Accepted Answer

A price ceiling of $2.50 is above the equilibrium price of $1.00, so there would be no shortage. Instead, there would be a surplus of the good as suppliers would be willing to supply more than consumers are willing to buy at that price.

If the Equilibrium Price Is $1