A shortage will occur if a ________ is set ________ the equilibrium price.
A) price floor; below
B) price floor; above
C) price ceiling; above
D) price ceiling; below

Question

Quizplus · Accepted Answer

A shortage occurs when a price ceiling (a maximum price) is set below the equilibrium price, limiting how high the price can go. This typically results in demand exceeding supply because the price is artificially kept lower than what the market would naturally set, leading to a shortage of the good or service.

A Shortage Will Occur If a ________ Is Set ________

A Shortage Will Occur If a Is Set