The imposition of a binding price ceiling on a market causes quantity demanded to be
A)greater than quantity supplied.
B)less than quantity supplied.
C)equal to quantity supplied.
D)Both (a) and (b) are possible.

Question

The imposition of a binding price ceiling on a market causes quantity demanded to be
A)​greater than quantity supplied.
B)​less than quantity supplied.
C)​equal to quantity supplied.
D)​Both (a) and (b) are possible.

Quizplus · Accepted Answer

A binding price ceiling, set below the equilibrium price, causes the quantity demanded to exceed the quantity supplied, leading to a shortage.

The Imposition of a Binding Price Ceiling on a Market