If a price ceiling is below equilibrium price, the willingness to pay for the quantity provided will be above equilibrium price.

Name: If a price ceiling is below equilibrium price, the willingness to pay for the quantity provided will be above equilibrium price.
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Question

Quizplus · Accepted Answer

A price ceiling below equilibrium creates a shortage, leading to increased competition among buyers, which can drive the willingness to pay above the equilibrium price.

If a Price Ceiling Is Below Equilibrium Price, the Willingness