If a price ceiling were established above the equilibrium price,
A) it would have no effect on the quantity demanded.
B) it would create a shortage.
C) it would create a surplus.
D) none of the above.

Question

Quizplus · Accepted Answer

A price ceiling set above the equilibrium price would not affect the market because the market can naturally settle at the equilibrium price without interference.

If a Price Ceiling Were Established Above the Equilibrium Price