Asked by
Arely De La Torre
on Oct 26, 2024
Verified
The government imposes a price ceiling below the equilibrium price.The price ceiling will cause:
A) demand to decrease.
B) supply to increase.
C) a shortage of the good.
D) an increase in the quality of the good.
Price Ceiling
A legal maximum price that can be charged for a good or service, typically set by government regulation.
Shortage
A situation where the demand for a good or service exceeds the supply available at a specific price.
- Evaluate the impact of government interventions in the market such as setting price ceilings below the equilibrium price.
Verified Answer
SJ
Learning Objectives
- Evaluate the impact of government interventions in the market such as setting price ceilings below the equilibrium price.