Both price floors and price ceilings, when effective, lead to: b) surpluses and a) shortages.
Price ceilings are maximum price limits set by the government, typically below the market equilibrium price. When enforced, they prevent prices from rising to their natural level, resulting in increased demand but limited supply, creating a shortage of goods. On the other hand, price floors are minimum price limits imposed by the government, usually above the market equilibrium price. They lead to excess supply or a surplus because the higher price encourages producers to supply more than consumers are willing to buy at that price.
In summary, effective price ceilings lead to shortages while effective price floors create surpluses.