In case of price ceiling what is the mos

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Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

In case of price ceiling what is the most apparent market situation?

Options:

Excess demand exists

Excess supply exists

Both

Can't say

Correct Answer:

Excess demand exists

Explanation:

Price cant be increased to equilibrium level, thus excess demand exists.