When a price ceiling is set below the equilibrium price,the quantity supplied ________ the quantity demanded and ________ exists.
A) is less than; a surplus
B) is less than; a shortage
C) is greater than; a surplus
D) is greater than; a shortage
E) equals; an equilibrium

Question

Quizplus · Accepted Answer

When a price ceiling is set below the equilibrium price, it causes the quantity supplied to be less than the quantity demanded, leading to a shortage.

When a Price Ceiling Is Set Below the Equilibrium Price,the