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Price ceiling is the maximum price that a firm may charge for a good or service
Price ceilings creates excess demand when it is set below the equilibrium price
A price ceiling on gasoline would cause a shortage of gasoline in the market
Price ceilings benefit the buyers of certain goods
Price ceilings result in higher consumer surplus
Price ceilings result in lower producer surplus
a product shortage
greater the elasticity of both demand and supply
ceiling prices and the resulting product shortages
the government is imposing a legal price that is below the equilibrium price
the quantity demanded will exceed the quantity supplied, a black market for hamburger may evolve, and the consumers may want government to ration hamburger.
neither the equilibrium price nor equilibrium quantity will be affected