Advertisements
Advertisements
Question
What is the immediate market effect when a price ceiling is set below the equilibrium price?
Options
Surplus of goods
No effect; market equilibrium remains
Shortage of goods
Prices rise above equilibrium
MCQ
Advertisements
Solution
Shortage of goods
Explanation:
Quantity demanded increases and quantity supplied decreases, resulting in a shortage.
shaalaa.com
Is there an error in this question or solution?
