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 of the following is a secondary function of commercial banks?
Which of the following is/are function(s) of a commercial bank?
- Accepting deposits
- Giving loans
- Payments and settlements
Which one of the following is a primary function of commercial banks?
Important Questions from Commercial Banks
Which of the following banks is the largest commercial bank in India?
Which of the following would reduce the credit creation capacity of a Commercial Bank?
A. Time and Demand deposits
B. Loans
C. Deposits with the Central Bank
D. Cash in hand
Choose the correct answer from the options given below:
Which one of the following is not the fund based business of commercial banks?
Which of the following are the limitations in the creation of credit of commercial banks?
A. The amount of cash that commercial banks possess
B. Supply of collateral security
C. Monetary policy of the central bank
D. Allied deposits scheme
E. Deposits linked with special benefits
Choose the correct answer from the options given below:
Which of the following statements is correct regarding the commercial paper?
I. It is unsecured money market instrument issued in the form of a promissory note.
II. It was introduced in India in 1990.
III. They are issued by the Reserve Bank of India.
