the graph, from D to S) if it is substantially above the equilibrium price. This is illustrated in the following

figure.

It will have a lesser effect if it is slightly above the equilibrium price. This is illustrated in the next figure.

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541

It will have no effect if it is set either slightly or substantially below the equilibrium price, since an equilibrium

price above a price floor will not be affected by that price floor. The following figure illustrates these situations.

10. A price ceiling prevents a price from rising above a certain level, but has no effect on prices below that level. It

will have its biggest effect in creating excess demand if it is substantially below the equilibrium price. The

following figure illustrates these situations.
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When the price ceiling is set substantially or slightly above the equilibrium price, it will have no effect on

creating excess demand. The following figure illustrates these situations.
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