In a Competitive Market, a Price Ceiling Set Below the Free-

Multiple Choice

In a competitive market, a price ceiling set below the free- market equilibrium price will result in

A) a new free- market equilibrium at a lower price and higher output level.
B) the quantity demanded exceeding quantity supplied and thus a shortage in the market.
C) the quantity supplied exceeding quantity demanded and thus a surplus in the market.
D) excess supply.
E) a continuation of the free- market equilibrium price and quantity.