When a shortage of a good is present due to a price ceiling,the amount supplied will be greater than the amount demanded.the quality of the good will generally improve.O non-price factors, such as discrimination or waiting in line, will playa greater role in the allocation of the good.O the demand for the product will increase and, thereby, eliminate theshortage.

Shortage occurs when quantity demanded of a good exceeds quantity supplied. A binding and effective…

When a shortage of a good is present due to a price ceiling, O the amount supplied will be greater than the amount demanded. O the quality of the good will generally improve. non-price factors, such as discrimination or waiting in line, will play a greater role in the allocation of the good. O the demand for the product will increase and, thereby, eliminate the shortage.

When a shortage of a good is present due to a price ceiling, O the amount supplied will be greater than the amount demanded. O the quality of the good will generally improve. non-price factors, such as discrimination or waiting in line, will play a greater role in the allocation of the good. O the demand for the product will increase and, thereby, eliminate the shortage.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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