For a particular product, an effective price ceiling results in
A) quantity demanded greater than quantity supplied.
B) quantity supplied greater than quantity demanded.
C) quantity demanded equal to quantity supplied.
D) demand equal to supply.

Question

Quizplus · Accepted Answer

An effective price ceiling, set below the equilibrium price, results in a quantity demanded that is greater than the quantity supplied, leading to a shortage.

For a Particular Product, an Effective Price Ceiling Results in