Suppose a price ceiling is imposed on rice but this is above the equilibrium price. This will result in the quantity supplied of rice exceeding the quantity demanded.

Question

Quizplus · Accepted Answer

If the price ceiling is above the equilibrium price, it will have no effect on the market as the equilibrium price will still prevail. Therefore, the quantity supplied will equal the quantity demanded, and there will be no excess supply or shortage of rice.

Suppose a Price Ceiling Is Imposed on Rice but This