1 If a maximum price is set below the equilibrium price,
[1] there will be a shortage.
[2] sellers will find it difficult to find willing buyers.
[3] market equilibrium will occur despite government regulation.
[4] all buyers will be able to purchase their desired quantities.
3.2 When government imposes price ceilings and floors in markets
[1] shortages and surpluses are eliminated.
[2] both buyers and sellers are better off.
[3] price no longer serves as a rationing mechanism.
[4] efficiency in the market is increased.