When a price ceiling is set below the market equilibrium price, it creates a situation where the quantity demanded exceeds the quantity supplied, leading to a __________.

When a price ceiling is set below the market equilibrium price, it creates a situation where the quantity of a good that consumers want to buy is greater than the quantity that producers are willing to sell. This leads to a shortage because the lower price encourages more people to buy the product while discouraging producers from supplying enough of it. For example, if the market price of apartments is normally $1,000 a month, but a price ceiling is set at $800, more people will want to rent apartments at that lower price, but fewer landlords will be willing to rent them out. As a result, there will not be enough apartments for everyone who wants one, causing a shortage. This imbalance can lead to long waiting lists or even increased competition among renters.