Why do shortages develop under a binding price ceiling? a

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Why do shortages develop under a binding price ceiling?

a. It makes the price so low that the quantity demanded exceeds the quantity supplied in the legal market.

b. It makes the price so low that the quantity demanded exceeds the quantity supplied on the black market.

c. It encourages sellers to increase the quality of the products they sell, which in turn increases the quantity demanded.

d. It encourages buyers to purchase less of the product.

e. It encourages sellers to produce more of the product.