Final answer:
A price ceiling below the equilibrium price causes a shortage of computers.
Step-by-step explanation:
A price ceiling is a maximum price set by the government that sellers are allowed to charge for a product. In the case of the computer market, if a price ceiling is set below the equilibrium price, it will cause the quantity demanded to rise and the quantity supplied to fall. This creates a shortage of computers in the market.
When the price ceiling is below the equilibrium price, the quantity demanded exceeds the quantity supplied. This is because consumers are willing to buy more computers at the lower price, but producers are less willing to supply them at that price. As a result, there are not enough computers available to meet the demand, leading to a shortage.
For example, let's say the equilibrium price of computers is $1000, but the government imposes a price ceiling of $800. This lower price encourages more people to buy computers, resulting in a higher demand. However, at the same time, producers are less willing to supply computers at the lower price, leading to a decrease in supply. The quantity demanded exceeds the quantity supplied, creating a shortage of computers.