When a price ceiling for shows is lifted shoe shortage becom

When a price ceiling for shows is lifted, shoe shortage becomes less severe...True or False

Solution

Price ceiling which is set below the equilibrium price leads to shortage of shoe in market because price is less,so producers supply less. If this ceiling is lifted, supply will rise until demand becomes equal to supply.So shoe shortage will slowly become less severe and then eliminated once demand will be equal to supply.

So this statement is true.