If a legal ceiling price is set above the equilibrium price, a shortage of the product will occur. a surplus of the product will occur. a black market will evolve. neither the equilibrium price nor the equilibrium quantity will be affected

If a legal ceiling price is set above the equilibrium price, a shortage of the product will occur. a surplus of the product will occur. a black market will evolve. neither the equilibrium price nor the equilibrium quantity will be affected

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter3: Market Demand And Supply

Section: Chapter Questions

Problem 8SQ

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Question

If a legal ceiling price is set above the equilibrium price,

a shortage of the product will occur.
a surplus of the product will occur.
a black market will evolve.
neither the equilibrium price nor the equilibrium quantity will be affected.

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If a legal ceiling price is set above the equilibrium price, • a shortage of the product will occur. a surplus of the product will occur. a black market will evolve. neither the equilibrium price nor the equilibrium quantity will be affected.
With a price ceiling above the equilibrium price, quantity demanded would exceed quantity supplied. quantity supplied would exceed quantity demanded. the market would be in equilibrium. the equilibrium price would be expected to fall over time.
A price ceiling is only effective if it is above the market equilibrium. True False
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