Quantitative Analysis of Price Ceilings and Price Floors: Finding Points

5. Consumer and Producer Surplus; Price Ceilings and Floors / Quantitative Analysis of Price Ceilings and Price Floors: Finding Points / Problem 2

Problem 2

If the equilibrium price is \$150 and a price ceiling is set at \$100, what happens to the quantity demanded?

It remains the same.

It becomes zero.

It decreases.

It increases.