When a Price Ceiling Is Imposed Below the Equilibrium Price

question 17

Multiple Choice

When a price ceiling is imposed below the equilibrium price of a commodity,

• A) quantity supplied will be greater than quantity demanded for the good.
• B) the problem of scarcity will be solved.
• C) a shortage of the good will develop.
• D) a surplus of the good will develop.

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Definitions:

Condition

A specific state of health, whether normal or abnormal, including diseases and disorders.

Disease

A condition that impairs normal functioning of the body, typically characterized by specific signs and symptoms.

Position

Position refers to the location or orientation of an object, person, or entity in space relative to other entities or a reference point.

Frequency

The rate at which something occurs over a particular period of time or in a given sample.