The quantity sought and provided are impacted in the following ways when a price

The quantity sought and provided are impacted in the following ways when a price ceiling is set below the equilibrium level. The highest price that can be charged for a certain commodity or service is known as the price ceiling (Rahman et al., 2023). When this price is lower than the equilibrium price, there is a shortage since there are more demands than supplies. As consumers are ready to purchase more items at a reduced price, the quantity requested rises. On the other hand, when manufacturers find it less lucrative to create and sell the product at a reduced price, the amount provided declines. The market is scarce due to this discrepancy between supply and demand.
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