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Governments often implement price ceilings to protect consumers from the high prices of essential goods and services that frequently follow natural disasters. One
unfortunate side effect of these price ceilings is that they will likely. (1 point
O lead to a shortage as prices are kept from falling to their equilibrium level
• lead to a shortage as prices are kept from rising to their equilibrium level
o lead to a surplus as prices are kept from falling to their equilibrium level
• lead to a surplus as prices are kept from rising to their equilibrium

Respuesta :

One  unfortunate side effect of these price ceilings is that they will likely lead to a shortage as prices are kept from rising to their equilibrium level.

A price ceiling is a form of price control where the government sets the maximum price of a product. The price of the good is usually set below equilibrium price.

Effects of a price ceiling

  1. It leads to shortages. This is because the profit that can be earned by producers has fallen and this discourages the supply of goods and services.  
  2. It leads to the development of black markets.
  3. Consumer surplus increases. This is because price is below equilibrium price.  

To learn more about a price ceiling, please check: brainly.com/question/24312330?referrer=searchResults

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Answer:

B) lead to a shortage as prices are kept from rising to their equilibrium level

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