If a price ceiling is set by the government above the market equilibrium price, then A: the quantity demanded in the market is greater than the quantity supplied, thereby creating a surplus. B: the quantity supplied in the market is greater than the quantity demanded, thereby creating a shortage. C: the market equilibium price will prevail. D: the quantity supplied in the market is greater than the quantity demanded, thereby creating a surplus.

If a price ceiling is set by the government above the market equilibrium price, then A: the quantity demanded in the market is greater than the quantity supplied, thereby creating a surplus. B: the quantity supplied in the market is greater than the quantity demanded, thereby creating a shortage. C: the market equilibium price will prevail. D: the quantity supplied in the market is greater than the quantity demanded, thereby creating a surplus.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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