If a Price Ceiling Is Set Above the Equilibrium Price,then

question 252

Multiple Choice

If a price ceiling is set above the equilibrium price,then

• A)prices will fall as soon as the ceiling price is abolished.
• B)prices will remain the same (not rise)when the price ceiling is lifted.
• C)equilibrium price and ceiling prices are two totally different concepts and hence do not affect each other.
• D)prices will begin to rise rapidly when the price ceiling is lifted.

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Definitions:

Demand

The willingness and ability of consumers to purchase goods or services at different prices, influencing market dynamics and pricing strategies.

Role Overload

A situation in which an individual is given more responsibilities or roles than they are able to manage or complete effectively.

Demands

The needs or desires that individuals or groups request or expect to be fulfilled.

Capacity

The maximum amount that something can contain or the ability of something, especially in terms of production or understanding.