Imposition of price _______ below the equilibrium price leads to excess _______.
ceiling; demand
Imposing a price ceiling below the equilibrium price leads to excess demand because the price is set below the market clearing price. Consumers want to buy more at the lower price, but suppliers are unwilling to supply as much, resulting in a shortage of goods. Hence, option 2 is correct.
Similar Questions
Which one of the following is a primary function of commercial banks?
Which of the following is/are function(s) of a commercial bank?
- Accepting deposits
- Giving loans
- Payments and settlements
Which of the following is a secondary function of commercial banks?
Important Questions from Commercial Banks
Which of the following banks is the largest commercial bank in India?
Which one of the following is a primary function of commercial banks?
Which of the following is/are function(s) of a commercial bank?
- Accepting deposits
- Giving loans
- Payments and settlements
- Which of the following are liabilities of commercial banks ?
I. Capital and reserves
II. Cash and balances with RBI
III. Investments
IV. Borrowings
Codes : Which one of the following is not the fund based business of commercial banks?
