Asked by
Alicia McGeorge
on Oct 13, 2024
Verified
When there is a price ceiling there will be
A) a shortage.
B) a surplus.
C) either a shortage or a surplus.
D) neither a shortage nor a surplus.
Price Ceiling
A government-imposed limit on how high a price is charged for a product, meant to protect consumers from conditions that could make commodities prohibitively expensive.
Shortage
A market condition where the demand for a product exceeds its supply at a particular price.
Surplus
is a situation in which the quantity of a good or service available exceeds the quantity demanded at the current price.
- Identify the outcomes of price controls such as price ceilings and floors on market surplus or shortage.
Verified Answer
BR
Learning Objectives
- Identify the outcomes of price controls such as price ceilings and floors on market surplus or shortage.