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jek_recluse [69]
3 years ago
8

If a price ceiling is set above the equilibrium price in a market rev:a. rationing will be necessary. b. surpluses of the commod

ity will develop. c. the quantity demanded will exceed the quantity supplied. d. the quantity supplied will equal the quantity demanded.
Business
1 answer:
olga_2 [115]3 years ago
4 0

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.

I hope my answer helps you

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I had to look for the options and here is my answer:
Based on the one presented above, we can say that the equivalent equation can be written like this: <span>BI + P = COGS + EI. BI refers to the beginning inventory and P is the purchases. The COGS is the cost of goods sold. EI is the ending inventory. Hope this helps.</span>
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