-An effective government imposed price ceiling will result
A) in a surplus on the market.
B) in a shortage on the market.
C) in additional revenue for the government.
D) in prices for the product falling in the future.

Question

-An effective government imposed price ceiling will result
A) in a surplus on the market. 
B) in a shortage on the market. 
C) in additional revenue for the government. 
D) in prices for the product falling in the future.

Quizplus · Accepted Answer

A price ceiling, when set below the equilibrium price, leads to a situation where the quantity demanded exceeds the quantity supplied, creating a shortage in the market.

-An Effective Government Imposed Price Ceiling Will Result