Question

Select the correct answer. A price ceiling will usually shift:

a. demand

b. supply

c. both

d. neither

Short answer

Price Ceiling shifts neither demand nor supply curve.

Step-by-step solution

Price Ceiling Concept 

Price Ceiling is the maximum mandated price of a commodity, fixed by regulatory body, to protect the interests of buyers and prevent them from being exploited.

Example : Maximum fixed price of medicines

Detailed Explanation 

Price Ceiling is just an imposed price, lower than the equilibrium price - ie where demand & supply curves intersect.

It doesn't shift either demand or supply curve, just fixes a price below their intersection point. A change in the price can cause movement along the existing demand and supply curves, but not a shift.