Which of the following observations would be consistent with the imposition of a binding price ceiling on a market?

Question

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When a binding price ceiling is imposed on a market, it sets a maximum legal price below the equilibrium price. This creates a shortage of the good, as the quantity demanded exceeds the quantity supplied. As a result, there may be a smaller quantity of the good bought and sold after the price ceiling becomes effective. This is consistent with choice A. Option B is incorrect because the quantity demanded does not change due to a price ceiling, rather it reduces to a level lower than the quantity supplied. Option C is also incorrect as there is no reason for suppliers to supply more of the good if the price they can charge is lower than the equilibrium price.

Which of the Following Observations Would Be Consistent with the Imposition