When a binding price ceiling is imposed on a market for a good, some people who want to buy the good cannot do so.

Name: When a binding price ceiling is imposed on a market for a good, some people who want to buy the good cannot do so.
Brand: Quizplus
Rating: 4.9 (28 reviews)

Question

Quizplus · Accepted Answer

A binding price ceiling is set below the equilibrium price, leading to a shortage where the quantity demanded exceeds the quantity supplied, meaning not everyone who wants to buy the good at the controlled price can do so.

When a Binding Price Ceiling Is Imposed on a Market