What would price ceiling lead to when the maximum price is fixed lower than the equilibrium price?

Option 1 -> Excess supply occurs when price is set above equilibrium (price floor), not below.

Option 2 -> Deficit supply means shortage of supply, but the correct term is excess demand.

Option 3 -> When price ceiling is below equilibrium, quantity demanded exceeds quantity supplied, creating excess demand.

Option 4 -> Deficit demand would mean shortage of demand, which is opposite to what happens.

Hence, Option 3: Excess Demand -> When a price ceiling is fixed lower than the equilibrium price, the artificially low price makes goods more affordable, causing consumers to demand more. However, at this lower price, producers are less willing to supply, reducing quantity supplied. This mismatch creates excess demand (shortage), where quantity demanded > quantity supplied. For example, if rent control sets maximum rent below market equilibrium, more people want apartments than are available. -> correct