Question

if a government imposed price ceiling legally sets the price of beef below market equilibrium, which of the following will most likely happen? a. the quantity of beef supplied will increase. b. there will be a surplus of beef. c. there will be a shortage of beef. d. the quantity of beef demanded will decrease.

Explanation:

A price ceiling below market equilibrium means the legal price is lower than the price where quantity supplied equals quantity demanded. At this lower price, consumers will want to buy more beef (quantity demanded rises), while producers will want to supply less beef (quantity supplied falls). When quantity demanded exceeds quantity supplied, a shortage occurs.

Answer:

c. There will be a shortage of beef.