What direction will quantity and price of beer of beer move

What direction will quantity and price of beer of beer move in under each of the following government policies a) The government imposes a one-day price ceiling below market levels, but repeals the ceiling as soon as it sees prices reach the ceiling level. i. Price - ___________ ii. Quantity - __________

Solution

Because of the imposition of price ceiling , there is low price and shoratge of quantity .Demand is more than supply. So, there is downward pressure on both supply and price.