A binding price ceiling always leads to a surplus in the market, making it beneficial for consumers seeking lower prices.

A binding price ceiling is a limit set by the government on how high a price can be charged for a product. When this ceiling is below the market price, it makes the product cheaper for consumers, which sounds good at first. However, because producers may not want to sell their goods at the lower price, they might reduce the quantity they supply. This mismatch between high demand from consumers and low supply from producers leads to a shortage, not a surplus. For example, if the government sets a price ceiling on rental apartments, more people want to rent them because they are cheaper, but landlords might not want to rent them out at that price, resulting in fewer available apartments.