tb mc qu. 03 - 212 an effective price ceiling will... an effective price ceiling will multiple choice clear…
tb mc qu. 03 - 212 an effective price ceiling will... an effective price ceiling will multiple choice clear the market. induce new firms to enter the industry. result in a product surplus. result in a product shortage.
Answer
Brief Explanations:
An effective price - ceiling is set below the equilibrium price. At this lower price, quantity demanded exceeds quantity supplied, leading to a shortage. It doesn't clear the market as there is unmet demand. It also doesn't attract new firms as lower prices reduce profit - incentives, and it results in a shortage, not a surplus.
Answer:
result in a product shortage.