Either a price ceiling or a price floor will result in an amount bought and sold that is less than the equilibrium quantity.

Question

Quizplus · Accepted Answer

A price ceiling is a maximum legal price set below the equilibrium price, which results in a shortage of the product because the quantity demanded is greater than the quantity supplied. A price floor is a minimum legal price set above the equilibrium price, which results in a surplus of the product because the quantity supplied is greater than the quantity demanded. In both cases, the quantity bought and sold will be less than the equilibrium quantity.

Either a Price Ceiling or a Price Floor Will Result