Setting a Price Ceiling Below the Equilibrium Price Can Result

question 26

Multiple Choice

Setting a price ceiling below the equilibrium price can result in

• A) a surplus,where the quantity demanded exceeds the quantity supplied.
• B) a shortage,where the quantity demanded exceeds the quantity supplied.
• C) a surplus,where the quantity supplied exceeds the quantity demanded.
• D) a shortage,where the quantity supplied exceeds the quantity demanded.
• E) no impact on the quantity demanded or on the quantity supplied.

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