Which of the following is a demerit of price ceiling?

(A) Black Marketing.
(B) Stability of income of producers.
(C) Low quality product is offered to consumer.
(D) Standing in long queues to get allocated quota of the commodity.

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is Option (4) → (A), (C) and (D) only

A price ceiling is a government-imposed upper limit on the price of a good or service, typically set below the equilibrium price to make essential goods more affordable. 

This often leads to several demerits, including:

• (A) Black Marketing: Price ceiling often leads to black marketing because demand exceeds supply, and people are willing to pay more than the legal maximum price.

• (C) Low quality product is offered to consumers: Producers, facing reduced profit margins due to the ceiling, may compromise on the quality of the product.

• (D) Standing in long queues: Due to shortage of the commodity, consumers often have to wait in long queues to get their share.

(B) Stability of income of producers – Incorrect.  Price ceiling generally reduces producers' income, as they are forced to sell at a lower price, often below the market equilibrium.