Define price ceiling. What are the consequences of imposition of ceiling below
the equilibrium price?

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Solution

Dear Student
Price ceiling is a price set below the eqillibirium price so that price will not became too expensive and make it difficult to purchase by poor people. When price is set below the equilibrium price, than quantity demanded will be more than quantity supplies and it will leads to shortages of goods in the market.

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Define price ceiling. What are the consequences of imposition of ceiling below the equilibrium price?

Define price ceiling. What are the consequences of imposition of ceiling below
the equilibrium price?