If a price ceiling is set above the equilibrium price in a market rev:a. rationing will be necessary. b. surpluses of the commodity will develop. c. the quantity demanded will exceed the quantity supplied. d. the quantity supplied will equal the quantity demanded.

Respuesta :

Answer:

b. surpluses of the commodity will develop

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

If price ceiling is set above equilibrium price, suppliers would increase supply while consumers would reduce demand. This would lead to an excess supply and surplus in the economy.

When price ceiling is set above equilibrium price, it is known as a non binding price ceiling.

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