Question

which of the following statement about price ceiling is accurate
a) An effective price ceiling must be at a point below the equilibrium price
b) price ceiling will increase the quantity of good supplied
c) an effective price ceiling must be at a point more than equilibrium price
d)price ceiling will decrease the quantity demanded​

Answer 1

Answer:

Price ceilings prevent a price from rising above a certain level. When a price ceiling is set below the equilibrium price, quantity demanded will exceed quantity supplied, and excess demand or shortages will result. Price floors prevent a price from falling below a certain level.