What best describes the impact of a price ceiling in a competitive market?
A) This benefits all consumers because they are able to obtain the good for a lower price.
B) The quantity supplied will be in excess of the quantity demanded.
C) It will likely lead to consumers waiting in line for longer periods of time to buy the good.
D) It will benefit both consumers and producers of the good.

Question

Quizplus · Accepted Answer

Price ceilings, when set below the equilibrium price, often result in shortages because the quantity demanded exceeds the quantity supplied at that price. This can lead to longer wait times for consumers as they compete for the limited supply of the good.

What Best Describes the Impact of a Price Ceiling in a Competitive