If a price ceiling is set above the equilibrium price,
A) quantity demanded will equal quantity supplied.
B) there will be a surplus.
C) there will be a shortage.
D) demand will be less than supply.

Question

Quizplus · Accepted Answer

When a price ceiling is set above the equilibrium price, it does not affect the market because the market price is already lower than the ceiling. Therefore, quantity demanded will equal quantity supplied, maintaining market equilibrium.

If a Price Ceiling Is Set Above the Equilibrium Price