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Mkey [24]
3 years ago
15

What are some of the problems with a price ceiling?

Social Studies
1 answer:
nlexa [21]3 years ago
8 0

Answer:Price ceiling is when the government of a country mandates producers to sell their commodities below market or equilibrium price.

Explanation:Price ceiling leads to excess demand as consumers will excessively demand for products with a low price. Economically,the lower the price ,the higher the quantity demanded.

Also,Price ceiling will make producers produce inferior commodities as they will drastically reduce their cost of production which by using counterfeit raw materials.

Lastly,Price ceiling leads to supply shortage as producers are not willing to produce.

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