Effects of price ceiling, Effects of price ceiling : The consequences of price ceiling

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Effects of price ceiling

Effects of price ceiling: The consequences of price ceiling might be:

A) Scarcity of the commodity

B) The government might oblige rationing that is, supply of goods in limited quantity at ration shops.

C) Black market might appear. A black market is a condition whereby goods are sold at a price above the legal ceiling price.

D) The consumers might get poorer quality goods.

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