When a price ceiling which had been set below equilibrium price is removed,what happens next?

Question

Quizplus · Accepted Answer

When a price ceiling set below the equilibrium price is removed, the market moves towards equilibrium. This results in an increase in price, which leads to an increase in quantity supplied (as suppliers are willing to supply more at higher prices) and a decrease in quantity demanded (as consumers demand less at higher prices). Thus, all of the choices are correct outcomes of removing a price ceiling that was set below the equilibrium price.

When a Price Ceiling Which Had Been Set Below Equilibrium