If the equilibrium price of good X is $15 and a price ceiling is imposed at $14, the result will be:
A) an accumulation of inventories of unsold X.
B) difficult to determine.
C) a surplus.
D) a shortage.

Question

Quizplus · Accepted Answer

The price ceiling of $14 is below the equilibrium price of $15, which will create a shortage as the quantity demanded will exceed the quantity supplied. Consumers will want to buy more X at the lower price, but suppliers are less willing to sell at that price, resulting in a shortage of X.

If the Equilibrium Price of Good X Is $15 and a Price