Economics · Market Equilibrium
If the government imposes a price ceiling that is set significantly below the current market-clearing price for a basic service, which of the following is the most likely long-term structural outcome in that market?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1An immediate shift of the supply curve to the right to meet the excess demand
- 2A decrease in the quantity demanded as consumers perceive the service as low value
- 3A persistent shortage of the service where the quantity demanded exceeds the quantity supplied✓
- 4An increase in the quality of service provided to attract more customers
Correct answer
A persistent shortage of the service where the quantity demanded exceeds the quantity supplied
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Market Equilibrium MCQs →Want more practice questions on Market Equilibrium?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Market Equilibrium