If the equilibrium price of aspirins is $2.50 and a price ceiling is imposed at $3.00, the eventual result after market adjustment will be a(n):
A) surplus.
B) shortage.
C) accumulation of inventories.
D) equilibrium.

Question

Quizplus · Accepted Answer

The equilibrium price of aspirins is $2.50, which means that the market demand and supply are in balance at this price point. If a price ceiling of $3.00 is imposed, it is still below the equilibrium price which means that it will have no effect on the market. There will be no surplus, no shortage, and no accumulation of inventories because the market is already in equilibrium. The eventual result after market adjustment will be equilibrium.

If the Equilibrium Price of Aspirins Is $2