(--) Secure l https/ Principles of Economics Quiz: Week 4 Quiz 40 pts 16 of 20 (

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(--) Secure l https/ Principles of Economics Quiz: Week 4 Quiz 40 pts 16 of 20 (°complete) This Question: 2 p A price ceiling mposed below the equilibrium price O A. creates a black market in which the price might equal or exceed the equilibrium price O B. increases the demand for the good, which makes the shortage even larger O C. leads to increased search activity, which reduces the shortage of the good 0 D. creates a black market in which the pnce equals the price ceiling Click to select your answer Search the web and Windows

Explanation / Answer

B) increase the demand for the good, which makes the shortage even larger.

Price ceiling is the price which imposed by the government below the equilibrium price. government protects consumer by doing this activity. in this case demand is larger than supply which creats a shortage.

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