Final answer:
A price ceiling will usually shift both the demand and supply sides of the market, leading to a shortage.
Step-by-step explanation:
The correct answer is c. both.
A price ceiling is a maximum price set by the government that is below the equilibrium price. When a price ceiling is implemented, it usually leads to a shortage of the good or service. This affects both the demand and supply sides of the market.
For example, let's say the government sets a price ceiling on rent in a city. This means that landlords cannot charge rents above a certain amount. As a result, the quantity demanded by tenants increases, as they can now afford to rent at the lower price. However, the quantity supplied by landlords decreases, as they are not willing to offer their properties at the lower price. This creates a shortage in the rental market.