If a binding price ceiling were placed in the market in the graph shown:

Name: If a binding price ceiling were placed in the market in the graph shown:
Brand: Quizplus
Rating: 4.7 (46 reviews)

Question

Quizplus · Accepted Answer

Since the binding price ceiling is below the market equilibrium price, the quantity demanded by consumers will increase while the quantity supplied by producers will decrease, resulting in a shortage. Therefore, quantity demanded would exceed quantity supplied.

If a Binding Price Ceiling Were Placed in the Market