A persistent shortage may occur if:A) the government imposes a price ceiling below the equilibrium price.B) the government imposes a price floor below the equilibrium price.C) demand keeps falling.D) supply shifts rightward.

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Alexander Garcia · Accepted Answer

Final Answer : A, Explanation :  When the government imposes a price ceiling below the equilibrium price, it means that the maximum price at which a good or service can be sold is lower than the price at which the market is willing to buy. This creates a shortage as the quantity demanded exceeds the quantity supplied at that lower price, and suppliers are not motivated to produce more. As a result, there is a persistent shortage.

A persistent shortage may occur if:

A) the government imposes a price ceiling below the equilibrium price.
B) the government imposes a price floor below the equilibrium price.
C) demand keeps falling.
D) supply shifts rightward.

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