What is the main effect of imposing a ceiling price on a good?

Imposing a ceiling price on a good primarily leads to a decrease in producer surplus. This occurs because a ceiling price sets a maximum limit on the price at which a good can be sold, typically below the market equilibrium price. When prices are capped, producers receive less revenue for each unit sold compared to what they would earn in a free market scenario. This reduction in revenue can discourage production, as some suppliers may find it unprofitable to produce the good at the lower price.

Furthermore, while a ceiling price might increase consumer surplus by making goods more affordable for consumers, it can also lead to inefficiencies in the market, such as shortages, since the quantity demanded often exceeds the quantity supplied at that price. These dynamics contribute to decreased overall producer welfare, as the financial incentive for producers diminishes with the price ceiling.

In contrast, the other options do not accurately reflect the primary economic impact of a price ceiling. Increasing consumer surplus is a side effect, but the main effect relates to the pressure on producers. The creation of a surplus would typically occur with a price floor, not a ceiling, and a reduction in demand is not a direct consequence of a price ceiling; rather, demand may increase due to lower prices.