Question

question 4 (10 points)
which of the following is often the result of the imposition of a price ceiling on a market?
○ a shortage
○ a decrease in discrimination on the part of sellers
○ a surplus
○ an increase in investment in the industry

Explanation:

A price ceiling is a maximum legal price set below the market equilibrium price. At this lower price, quantity demanded by consumers exceeds quantity supplied by producers, creating a shortage. A surplus occurs with price floors, not ceilings. Price ceilings do not reduce seller discrimination and typically discourage industry investment due to lower potential profits.

Answer:

a. a shortage