The imposition of a price ceiling on a market often results in:
A) an increase in investment in the industry.
B) a surplus.
C) a shortage.
D) a decrease in discrimination on the part of sellers.

Question

Quizplus · Accepted Answer

When a price ceiling is imposed, it is set below the equilibrium price, meaning that demand will exceed supply, resulting in a shortage. This can lead to other negative effects, such as rationing, higher costs for consumers, and a reduction in quality.

The Imposition of a Price Ceiling on a Market Often