In a free market,a price ceiling

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A price ceiling is a government-imposed maximum price that can be charged for a good or service. In a free market, prices are determined by the interaction of supply and demand. When a price ceiling is set below the equilibrium price, it creates a situation where there is excess demand, leading to shortages. This is because sellers are no longer able to charge the market price that balances supply and demand, and therefore are likely to reduce their supply or withhold it altogether. Thus, a price ceiling creates shortages and a rationing problem, as there are more buyers than available goods at the artificially low price.

In a Free Market,a Price Ceiling