If a price ceiling is below equilibrium price,the quantity demanded will exceed the quantity supplied.

Question

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If the price ceiling is below equilibrium price, it means that the government has legally limited the price that can be charged for a good or service to be lower than what the market would naturally determine. As a result, consumers will demand more of the good or service at the lower price, but suppliers will reduce the quantity they are willing to supply since it is no longer profitable for them to produce at the lower price. This creates a shortage and excess demand for the good, because the quantity demanded exceeds the quantity supplied.

If a Price Ceiling Is Below Equilibrium Price,the Quantity Demanded