Final answer:
A price ceiling creates a shortage when the quantity demanded exceeds the quantity supplied. The shortage can be addressed by developing a way to divide the product among consumers or producing more products.
Step-by-step explanation:
A price ceiling is a government-imposed limit on the maximum price that can be charged for a product. When price ceilings come into effect, there is a shortage because the quantity demanded exceeds the quantity supplied. This is because the price is not allowed to rise to the equilibrium level.
To address the shortage caused by price ceilings, a possible solution is to develop a way to divide the product among consumers. For example, a rationing system can be implemented to ensure that everyone gets access to the product. Another solution is to produce more products to meet the increased demand. However, it's important to note that producing more products may not always be possible or economically feasible.