A market is in equilibrium when the price of a bag of rice is ₦50,000 and the quantity traded is 200 bags. If the government imposes a price ceiling of ₦40,000, the most likely outcome is

A price ceiling is a maximum price set below the equilibrium price. At ₦40,000, which is below the equilibrium of ₦50,000, the quantity demanded will exceed the quantity supplied, creating a shortage. Suppliers are unwilling to supply as much at the lower price, while consumers demand more at the reduced price.