The imposition of a price ceiling on a market often results in a shortage.
Price ceilings prevent a charge from growing above a certain stage. whilst a rate ceiling is set beneath the equilibrium charge, the amount demanded will exceed the amount provided, and extra calls for or shortages will result.
The usual end result of a charge ceiling is a shortage because whilst a charge ceiling is set beneath the equilibrium charge, the quantity demanded is greater than the quantity supplied.
A charge ceiling is illegally imposed on most rates. When the rate is about underneath the equilibrium rate, the quantity demanded will exceed the amount supplied. This could bring about a shortage.
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