If a price ceiling is imposed at $15 per unit when the equilibrium market price is $12,there will be
A) no surplus or shortage.
B) a surplus.
C) a shortage.
D) a downward pressure on prices.
E) an upward pressure on prices.

Question

Quizplus · Accepted Answer

Since the price ceiling is set above the equilibrium price, it does not affect the market, and there will be no surplus or shortage as the market can operate at its equilibrium.

If a Price Ceiling Is Imposed at $15 Per Unit