One likely result of a price ceiling is that:
A) a surplus of product would result.
B) the price charged in the market would be above the equilibrium price.
C) the price charged in the market would be the equilibrium price.
D) the available product must be rationed.

Question

Quizplus · Accepted Answer

When a price ceiling is set below the equilibrium price, the demand for the product will exceed the supply, resulting in a shortage. In order to allocate the limited supply, some form of rationing must occur. This could be done through non-price means such as waiting lists or lottery systems, or through black markets and illegal transactions.

One Likely Result of a Price Ceiling Is That