Arrange the following statements in chronological sequence about how government intervention in the form of price control has an impact on the market.

(A) There will be an excess demand for sugar in the market at that price.
(B) Government-imposed upper limit on the price of sugar.
(C) Quantity of sugar can be distributed to everyone, through a system of rationing.
(D) It could end up creating a shortage of sugar in the market.

Choose the correct answer from the options given below:

(B), (A), (D), (C)

The correct answer is Option (3) → (B), (A), (D), (C)

B) Government-imposed upper limit on the price of sugar. This is the initial action — the government intervenes by setting a price ceiling (maximum price) to make sugar affordable.

(A) There will be an excess demand for sugar in the market at that price. Since the price is now lower than the equilibrium price, demand increases, but supply decreases, resulting in excess demand.

(D) It could end up creating a shortage of sugar in the market.. The excess demand leads to a shortage, as the quantity demanded exceeds quantity supplied.

(C) Quantity of sugar can be distributed to everyone, through a system of rationing. To manage this shortage, the government may resort to rationing, distributing sugar in limited quantities.