Excess quantity demanded may result from
A) a government-imposed minimum price above market equilibrium.
B) a government-imposed maximum price below market equilibrium.
C) an oversupply of output.
D) technological progress.

Question

Quizplus · Accepted Answer

A government-imposed maximum price below market equilibrium can lead to excess demand, as the price is set too low for the market to clear, meaning consumers want to buy more than producers are willing to supply at that price.

Excess Quantity Demanded May Result from