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.

11. Neither. A shift in demand or supply means that at every price, either a greater or a lower quantity is

demanded or supplied. A price floor does not shift a demand curve or a supply curve. However, if the price

floor is set above the equilibrium, it will cause the quantity supplied on the supply curve to be greater than

the quantity demanded on the demand curve, leading to excess supply.

12. Neither. A shift in demand or supply means that at every price, either a greater or a lower quantity is

demanded or supplied. A price ceiling does not shift a demand curve or a supply curve. However, if the

price ceiling is set below the equilibrium, it will cause the quantity demanded on the demand curve to be

greater than the quantity supplied on the supply curve, leading to excess demand.
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