When a price ceiling is imposed above the equilibrium price ........

Economics- Phase (I & II) Demand and Supply , Market Structures

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When a price ceiling is imposed above the equilibrium price,

a shortage results.

a surplus results.

the equilibrium outcome prevails.

there is not enough information to determine the outcome.

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Explanation:

When a price ceiling is imposed above the equilibrium price, the equilibrium outcome prevails. This is a trick question. Remember that a price ceiling is the maximum price allowed in the market. If the price ceiling for, say, apartments is imposed at $1,000 per month but the market price is just $800, then the market outcome prevails. The ceiling is not binding.