If a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen?
A) The quantity of beef demanded will decrease.
B) The quantity of beef supplied will increase.
C) There will be a surplus of beef.
D) There will be a shortage of beef.

Question

Quizplus · Accepted Answer

A price ceiling set below the market equilibrium price will lead to a shortage because the quantity demanded will exceed the quantity supplied at that price.

If a Government Imposed Price Ceiling Legally Sets the Price