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

• A. No change, as the market will adjust to the new price.
• B. A surplus, as the quantity supplied will exceed the quantity demanded.
• C. A shortage, as the quantity demanded will exceed the quantity supplied.
• D. An increase in the equilibrium price.

Answer: (C)