Imposition of price ceilings usually results into?

Option 1 -> Price ceiling is set below equilibrium, increasing quantity demanded while decreasing quantity supplied, creating shortage.

Option 2 -> Excess supply occurs with price floors (minimum prices), not price ceilings.

Option 3 -> Surplus is same as excess supply, which results from price floors, not ceilings.

Option 4 -> Price ceilings significantly impact markets by creating shortages and rationing problems.

Hence, Option 1: Excess demand for the good in the market -> When a price ceiling is imposed below the equilibrium price, consumers want to buy more at the artificially low price (quantity demanded increases), but producers are willing to supply less at this lower price (quantity supplied decreases). This mismatch creates a shortage, where quantity demanded exceeds quantity supplied, resulting in excess demand. Classic examples include rent control and price caps on essential goods during emergencies. -> correct