If the real market price of a product is ?20 per unit and in this

Explanation

This question is asking what will happen when the government sets a price ceiling of ?30 per unit on a product whose real market price is ?20 per unit. A price ceiling is the maximum price allowed for a product to be sold in the market.

The correct answer is option B, which states that there will be a surplus of the product in the market. This is because the government's price ceiling is set higher than the real market price, so producers will be encouraged to produce more of the product, while consumers will be discouraged from buying as much due to the higher price. This results in an excess supply of the product, which can lead to a surplus in the market.

Option A is incorrect because people will not buy the product at ?30, as the real market price is only ?20. Option C is also incorrect because the price ceiling will be effective in limiting the price at which the product can be sold, but it may have unintended consequences such as a surplus. Option D is also incorrect because the government cannot put a price ceiling below the equilibrium price, as this would lead to a shortage in the market.

This question highlights the concept of price ceilings and their impact on the market. It is important to note that while price ceilings may be intended to help consumers by limiting the price they have to pay, they can have unintended consequences such as surpluses or shortages in the market.