Answer :
Answer:
The correct answer is: The shortage in the market will increase.
Explanation:
In Economy it is understood by shortage or excess of demand the situation in the quantity demanded (demand) of a product or service exceeds the quantity offered (supply).
Excess demand and the relative shortage are mainly explained by:
Setting maximum prices (with a price lower than the equilibrium price of that market), or price controls, by the government; which prevents producers from selling at a price higher than that determined by the authority.
Answer: SHORTAGE IN SUPPLY DUE TO AN INCREASE IN DEMAND.
Explanation:Price ceiling is a term used by economist to describe the maximum price above which a product or service can not be sold,it is usually set below the equilibrium price of a product.
When price ceilings are fixed,the producers or suppliers will reduce the volume or amount of goods or other commodities supplied to the market,making the demand for the product to rise according to the LAWS OF DEMAND AND SUPPLY. When the demand is less than supply in a price ceiling situation,their will be a SHORTAGE IN SUPPLY.