Question

When the government fixes a price for an agricultural commodity below the free-market equilibrium price, mainly to keep it affordable for consumers, and this results in sellers being unwilling to supply as much at the lower price, such a price is called a:

Q: Answer-When the government fixes a price for an agricultural commodity below the free-market equilibrium pr...

A ceiling price is a maximum price fixed by the government below the market equilibrium to keep essential commodities affordable for consumers because sellers become unwilling to supply as much at this lower price, it typically results in excess demand or a market shortage.