If the real market price of a product is \(\mathrm{N} 20\) per unit and in this market the government places a price ceiling at N30 per unit, what will happen?
A. People will buy the product at \(N 30\) B. There will be surplus of the product in the market C. Government price ceiling will not be above equilibrium D. price above equilibrium price
Correct Answer: B
Explanation
Whenever government fixes price above the market price, supply will be higher than demand and there will be excess supply.
