What will a binding price ceiling make it necessary to do

Name: What will a binding price ceiling make it necessary to do
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A binding price ceiling creates a situation where the maximum price that can be charged for a product is lower than the equilibrium price, which leads to excess demand or a shortage. In order to allocate the limited supply of the product, a way of rationing must be developed. This could involve queuing, lotteries, or other methods of determining who gets access to the product.

What Will a Binding Price Ceiling Make It Necessary to Do