A shortage will result whenever:
A)the government imposes a price floor below equilibrium price.
B)the government imposes a price ceiling above equilibrium price.
C)the government imposes a price floor above equilibrium price.
D)the government imposes a price ceiling below equilibrium price.

Question

A shortage will result whenever:
A)​the government imposes a price floor below equilibrium price.
B)​the government imposes a price ceiling above equilibrium price.
C)​the government imposes a price floor above equilibrium price.
D)​the government imposes a price ceiling below equilibrium price.

Quizplus · Accepted Answer

A shortage occurs when the quantity demanded exceeds the quantity supplied. If the government imposes a price ceiling below the equilibrium price, the resulting lower price will increase the quantity demanded and decrease the quantity supplied, leading to a shortage.

A Shortage Will Result Whenever