A price ceiling below the equilibrium price possibly leads to which of the following?

A. Black marketing

B. Commodity glut

C. Shortage of commodity

D. Commodity export

E. Price decline

Choose the correct answer from the options given below:

Correct option is C

A price ceiling below the equilibrium price can lead to black marketing and a shortage of the commodity. Black marketing occurs when individuals sell the commodity at a higher price in an illegal market in response to the shortage caused by the price ceiling. A price ceiling below the equilibrium price creates an artificial shortage of the commodity. The quantity demanded by consumers exceeds the quantity supplied by producers at the lower price, resulting in a shortage. Commodity glut refers to an excess supply of the commodity, which is unlikely to occur when a price ceiling is set below the equilibrium price. Commodity export is not directly related to a price ceiling, as it pertains to the sale of goods to other countries. Price decline may occur initially due to the price ceiling, but the shortage of the commodity is the more direct consequence.