Answer:
The correct answer is 'C'
Explanation:
The quantity demanded of physicals increases, and the quantity supplied of physicals decreases.
Answer:
C) the quantity demanded of physicals increases and the quantity supplied of physicals decreases.
Explanation:
Price ceilings usually result in a market failure called deadweight loss. This happens because the equilibrium price is set at an artificially low level which decreases the quantity supplied and increases the quantity demanded. This results in a shortage of products or services, and a loss of economic efficiency. In the attached graph, the deadweight loss is the colored area under the demand curve and above the supply curve.
