The harmful effect of a price ceiling to ________ is ________.
A) producers; the selling price of the product is above the equilibrium price
B) producers; the ceiling creates a surplus of the product
C) consumers; the selling price of the product is above the equilibrium price
D) consumers; the ceiling creates a shortage of the product

Question

Quizplus · Accepted Answer

A price ceiling set below the equilibrium price creates a shortage of the product because the quantity demanded exceeds the quantity supplied at the ceiling price, which primarily harms consumers by making it harder for them to purchase the product.

The Harmful Effect of a Price Ceiling to ________ Is