Question

question 3 0.5 pts the price ceiling that the california legislature placed on electricity caused: a surplus. an increase in supply. an increase in demand. a shortage.

Explanation:

A price ceiling is a legal maximum price set below the equilibrium price. When a price ceiling is imposed (below equilibrium), the quantity demanded exceeds the quantity supplied. A surplus occurs when supply > demand (price floor above equilibrium), so A is wrong. A price ceiling doesn't directly increase supply (supply is affected by factors like costs, technology, not just price ceiling alone in this way) or demand (demand is affected by factors like income, preferences, not just the price ceiling to increase it). A shortage happens when quantity demanded > quantity supplied, which is the result of a binding price ceiling (set below equilibrium). So the price ceiling on electricity (binding, as it's meant to limit price) causes a shortage.

Answer:

D. A shortage.