Answer to Question #25355 in Macroeconomics for Jordan

Question

When the government sets an effective price ceiling
A.there will be an increase in supply.
B.there will be an increase in demand.
C.there will be a decrease in supply.
D.there will be a decrease in demand.
E.neither supply nor demand will change

Answer 1

B.there will be an increase in demand.
When the government sets an effective price ceiling there will be an increase in demand. Doing this the government support customers and limit the producers.