A price ceiling set below the equilibrium price ________ search activity and ________ the use of black markets.

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price creates a shortage, leading to increased search activity as consumers try to find the limited goods available. It also encourages the use of black markets as people try to circumvent the shortage and obtain the goods at higher prices.

A Price Ceiling Set Below the Equilibrium Price ________ Search