A binding price ceiling causes quantity demanded to be less than quantity supplied.

Binding Price Ceiling

A maximum price set by the government below the equilibrium price, leading to shortages as the demand exceeds supply.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a given time period.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price within a specified time period.