The imposition of a price ceiling which is set below the market equilibrium will result in:

excess demand

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

force the price ceiling price to move back to the equilibrium

No worries! We‘ve got your back. Try BYJU‘S free classes today!

excess supply

No worries! We‘ve got your back. Try BYJU‘S free classes today!

none of these

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
excess demand

The imposition of a price ceiling which is set below the market equilibrium will result in an excess of demand over supply.

Suggest Corrections

Similar questions

Q. The imposition of ceiling on a monopoly's price will affect his ____________.

Consider the following demand and supply functions for a good.

Quantity demanded = 160 - 2p

Quantity supplied = - 40 + 2p

(i) Calculate the equilibrium price and quantity.

(ii) Find out a price at which there is excess demand.

(iii) Find out a price at which there is excess supply.

Suppose the demand and supply curves of a commodity are given as:
$Y^{d} = 200 - p$
$Y^{s} = 120 + p$
(i) Find the equilibrium price and equilibrium quantity.
(ii) Also show that at a price of Rs. 30, there is excess demand and at a price of Rs. 45, there is excess supply.

Q. The imposition of a ceiling on a monopolist's price will effect the company's ________.

Q. What would price ceiling lead to when the maximum price is fixed lower than the equilibrium price?

Join BYJU'S Learning Program

The imposition of a price ceiling which is set below the market equilibrium will result in:

The correct option is A excess demand The imposition of a price ceiling which is set below the market equilibrium will result in an excess of demand over supply.

The correct option is A
excess demand

The imposition of a price ceiling which is set below the market equilibrium will result in an excess of demand over supply.