Asked by
Jessica Miller
on Oct 09, 2024
Verified
If a legal ceiling price is set above the equilibrium price:
A) a shortage of the product will occur.
B) a surplus of the product will occur.
C) a black market will evolve.
D) neither the equilibrium price nor the equilibrium quantity will be affected.
Legal Ceiling Price
A maximum price set by government regulation that sellers are allowed to charge for a good or service, intended to protect consumers from excessive pricing.
Equilibrium Price
The rate at which the amount of a product supplied matches the amount of the product demanded.
- Acquire knowledge on the fundamentals of price ceilings and price floors and how they alter market environments.
Verified Answer
ME
Learning Objectives
- Acquire knowledge on the fundamentals of price ceilings and price floors and how they alter market environments.