If the price ceiling is set below the equilibrium price,
A) quantity demanded will equal quantity supplied.
B) there will be a surplus.
C) there will be a shortage.
D) demand will be less than supply.

Question

Quizplus · Accepted Answer

When the price ceiling is set below the equilibrium price, there will be a shortage as quantity demanded will be greater than quantity supplied at that price. This can result in a situation where some consumers are unable to purchase the product or must wait in long lines to do so.

If the Price Ceiling Is Set Below the Equilibrium Price