If the government imposes a price ceiling on leather garments below the equilibrium price, what will likely happen?

When the government imposes a price ceiling on leather garments that is set below the equilibrium price, it creates a situation where the price that consumers pay for these garments is artificially low. In a typical supply and demand scenario, when the price is lowered, the quantity demanded by consumers increases because the product becomes more affordable. However, at the same time, producers may be less willing to supply the same quantity of garments since the profit per item decreases due to the price ceiling.

The result of this imbalance is a shortage, which occurs when the quantity demanded exceeds the quantity supplied. Since consumers want to purchase more leather garments at the lower price, but producers cannot sell as many at that lower price, there will not be enough garments available to meet this increased demand. Hence, the correct response is that there will be a shortage of leather garments in the market as a consequence of the price ceiling.