Final answer:
Today's markets are price sensitive, and a price ceiling typically shifts neither demand nor supply, but can create shortages by capping prices below equilibrium. The correct answer is option D.
Step-by-step explanation:
Most markets today tend to be price sensitive. This means consumers pay close attention to changes in pricing and may alter their purchasing decisions based on fluctuations in the market price. A price ceiling, which is a government-imposed limit on how high a price can be charged for a product, will usually shift neither demand nor supply directly. Instead, it can lead to shortages where the quantity demanded exceeds the quantity supplied because the price is kept below the equilibrium price.