Arrange the following statements in chronological sequence about how government intervention in the form of price control has an impact on the market.

(A) There will be an excess demand for sugar in the market at that price.

(B) Government-imposed upper limit on the price of sugar.

(C) Quantity of sugar can be distributed to everyone, through a system of rationing.

(D) It could end up creating a shortage of sugar in the market.

Choose the correct answer from the options given below:

Option 1 -> Starts with excess demand before government intervention, which is illogical.

Option 2 -> Places rationing before government intervention, which doesn't follow proper sequence.

Option 3 -> (B) Government imposes price ceiling first → (A) Excess demand occurs at lower price → (D) Shortage develops in market → (C) Rationing system introduced to manage shortage. This is the correct chronological order.

Option 4 -> Begins with rationing before any government price control, which is incorrect.

Hence, Option 3: (B), (A), (D), (C) -> The logical sequence of price control impact: First, government imposes an upper price limit (price ceiling) on sugar. This artificially low price creates excess demand as consumers want to buy more at lower prices while suppliers want to supply less. This imbalance leads to a shortage in the market. Finally, to manage this shortage and ensure fair distribution, the government implements a rationing system. This reflects the classic economic problem of price ceilings creating market distortions. -> correct