A price ceiling is likely to result in a persistent _____, a transfer of surplus from _____, and _____ deadweight loss.
A) surplus; producers to consumers; some
B) shortage; producers to consumers; some
C) shortage; consumers to producers; no
D) surplus; consumers to producers; some

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price causes a shortage because the quantity demanded exceeds the quantity supplied. It transfers surplus from producers to consumers as consumers pay a lower price, and it results in some deadweight loss due to the inefficient allocation of resources.

A Price Ceiling Is Likely to Result in a Persistent