Which of the following would not result from a price ceiling (set below equilibrium price)?

Question

Quizplus · Accepted Answer

A price ceiling set below equilibrium price would result in a shortage (A) as demand would exceed supply at the lower price. There would be fewer exchanges (B) as consumers are not willing to pay the higher market price, and suppliers are unwilling to supply at the lower price. Nonprice rationing devices (D) such as waiting lists or lotteries may be used to allocate the limited available goods. However, there would not be an increase in supply (C) as the lower price would make it less profitable for suppliers to produce and offer their goods in the market.

Which of the Following Would Not Result from a Price