if-a-price-ceiling-is-set-at-50-in-a-market-where-the-equilibrium-price-is-70-wh

Question

If a price ceiling is set at $$50 in a market where the equilibrium price is 70$$, what is the likely outcome?

Accepted Answer

A shortage, as the quantity demanded will exceed the quantity supplied.

Answer

No change, as the market will adjust to the new price.

Answer

A surplus, as the quantity supplied will exceed the quantity demanded.

Answer

An increase in the equilibrium price.

If a price ceiling is set at \$50 in a market where the equilibrium price is \$70, what is the likely outcome?