Question

a price ceiling is imposed in the market for bicycles. what would be the effect on the quantity bought and sold if the selling price (a) above the equilibrium price and (b) below the equilibrium price ? explain​

Answer 1

Answer:

When a price ceiling is set, a shortage occurs. ... For the price that the ceiling is set at, there is more demand than there is at the equilibrium price. There is also less supply than there is at the equilibrium price, thus there is more quantity demanded than quantity supplied