Question

If the equilibrium price of solar panels is $200 per panel, but a price ceiling of $150 per panel is imposed, what happens to the market for solar panels?

Answer 1

Answer:

quantity demanded exceeds quantity supplied and a shortage occurs

Explanation:

The options to this question wasn't provided. Here is the link to the complete question: https://www.chegg.com/homework-help/questions-and-answers/equilibrium-price-solar-panels-200-per-panel-price-ceiling-150-per-panel-imposed-happens-m-q22993335

When a price ceiling is below equilibrium price, the good becomes cheaper to consumers, therefore demand increases. While the profit of suppliers fall and suppliers reduce the quantity supplied. This leads to a shortage in the market.

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