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AnnZ [28]
3 years ago
6

All of the following will occur if the government places an effective price ceiling on candy bars except:

Business
1 answer:
miskamm [114]3 years ago
6 0

Answer:

c. there will be a surplus of candy bars. 

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

If a price ceiling is effective, the price ceiling is set below equilibrium price.

If price is set below equilibrium price, the quantity supplied would fall and this would lead to an excess of demand over supply. Also, scarcity of the product for which a price ceiling has been set would occur.

A black market would occur. There would be a drop in the quality of product as sellers would be trying to maximise profits.

I hope my answer helps you

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