A price ceiling set above the equilibrium price results in

Question 11Select one:

A.
surpluses.

B.
shortages.

C.
the equilibrium price.

D.
an increase in supply.

E.
a decrease in demand.

Question

A price ceiling set above the equilibrium price results in

Question 11Select one:

A.
surpluses.


B.
shortages.


C.
the equilibrium price.


D.
an increase in supply.


E.
a decrease in demand.

Accepted Answer

***C*** ∻Key Concept∻ ⚹Price Ceiling⚹ ∻Explanation∻ ⚹A price ceiling set above the equilibrium price has no effect because the market equilibrium price is already below the ceiling. Therefore, the market will continue to operate at the equilibrium price.⚹◊How does a price ceiling set above the equilibrium price affect market outcomes in terms of surpluses or shortages?⍭ Generate me a similar question◊

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