A price ceiling set below the equilibrium price will always lead to a shortage in the market for that good or service.

A price ceiling is a maximum price set by the government that sellers can charge for a good or service. When this ceiling is set below the equilibrium price, which is the price where supply and demand are balanced, it creates a situation where the quantity demanded exceeds the quantity supplied. For example, if the equilibrium price of a popular video game is $60, and the government sets a price ceiling at $40, more people will want to buy the game at the lower price, but producers may not want to sell as many at that price. This leads to a shortage, meaning there aren’t enough games for everyone who wants one. Therefore, a price ceiling below the equilibrium price results in fewer goods available than people want to buy.