Refer to Figure 4.3. At an effective price ceiling for pencils,

A) quantity demanded is greater than quantity supplied.
B) quantity demanded is less than quantity supplied.
C) quantity demanded is equal to quantity supplied.
D) price is above equilibrium.

Price Ceiling

A legally imposed limit on how high a price can be charged for a product, service, or resource.

Quantity Demanded

The total amount of a goods or services consumers are willing and able to purchase at a specific price point.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period of time.