in-a-market-where-the-equilibrium-price-is-120-a-price-ceiling-is-set-at-100-wha

Question

In a market where the equilibrium price is $$120, a price ceiling is set at 100. $$What is the effect of this price ceiling?

Accepted Answer

It is effective and will cause a shortage.

Answer

It is ineffective and will have no impact.

Answer

It is effective and will cause a surplus.

Answer

It is ineffective and will cause a surplus.

In a market where the equilibrium price is \$120, a price ceiling is set at \$100. What is the effect of this price ceiling?