Which outcome corresponds to a price ceiling implemented below market equilibrium?

When a price ceiling is implemented below the market equilibrium, it creates a scenario where the maximum allowable price for a good or service is set lower than the price determined by supply and demand forces in the market. This means that sellers are unable to charge a price that would clear the market—where the quantity supplied equals the quantity demanded.

As a result of this lower price, consumers are encouraged to buy more of the good because it's cheaper, while sellers are disincentivized to supply as much of the good, since they receive less revenue. The disparity between the increased demand from consumers and the decreased willingness of producers to supply leads to a shortage.

Therefore, a price ceiling below market equilibrium does not stabilize market prices; rather, it disrupts the natural balance, resulting in a shortage where demand exceeds supply. This situation often results in long lines or waiting times for consumers trying to purchase the product.

On the other hand, a surplus of goods would arise from a price floor set above equilibrium, market prices would only be stable in the absence of any interventions, and there will always be some impact on supply or demand when a price ceiling is imposed. Hence, the correct outcome in this scenario is indeed a shortage of goods.