Question

Which of the following is true when a price ceiling is set below the equilibrium price?
Select one:
a. quantity supplied exceeds quantity demanded at the set price, creating a surplus
b. the price at which goods are actually bought is greater than the price ceiling
c. quantity supplied exceeds quantity demanded at the set price, creating a surplus
d. quantity supplied is equal to quantity demanded at the set price, creating a shortage
e. quantity supplied is less than quantity demanded at the set price, creating a shortage

Answer 1

I think its a

Answer 2

As you can see Qd>Qs

Quantity of demand is more than quantity supplied, hence it's a shortage.