If a price ceiling is established then

a. all consumers will benefit.

b. the gains to consumers will exceed the losses to others.

c. the total surplus will fall.

d. producer surplus will rise.

e. the market will be efficient.

The correct answer is c) the total surplus will fall.

If a price ceiling is established, then the total surplus will fall. It is because price ceiling forces producers to sell at lower prices, resulting in a deadweight loss. The gains to consumers are less than the loss to suppliers, resulting in a fall in total surplus.

Explanation for incorrect answers

Option A is incorrect as consumers would be able to enjoy benefits in the short-run and not in the long-run because of the shortage of products.

Option B is incorrect as gains to consumers are not defined.

Option D is incorrect as producer surplus will fall because of low prices.

Option E is incorrect because the market will be inefficient.