An effective price ceiling will most likely result in:
A) an increase in producer surplus.
B) an increase in consumer surplus.
C) a decrease in consumer surplus.
D) no change in either producer or consumer surplus.

Question

Quizplus · Accepted Answer

An effective price ceiling is set below the equilibrium price, leading to a lower price for consumers, which increases consumer surplus. However, it can lead to shortages and a decrease in producer surplus.

An Effective Price Ceiling Will Most Likely Result In