A price ceiling established below the market clearing price will usually cause
A) nonprice rationing.
B) an excess supply.
C) no change in the market clearing price.
D) a decrease in the market clearing price.

Question

Quizplus · Accepted Answer

A price ceiling set below the market clearing price typically leads to nonprice rationing mechanisms, such as long lines or lotteries, because the price cannot rise to equilibrium, creating a shortage.

A Price Ceiling Established Below the Market Clearing Price Will