Quantitative Analysis of Price Ceilings and Floors: Finding Points

5. Consumer and Producer Surplus; Price Ceilings and Price Floors / Quantitative Analysis of Price Ceilings and Floors: Finding Points / Problem 1

Problem 1

If a price ceiling is set below the equilibrium price, what happens to the quantity demanded?

It becomes zero.

It increases.

It remains the same.

It decreases.