Step 1: Draw a basic supply and demand diagram. The vertical axis represents price, and the horizontal axis represents quantity. The upward sloping line is the supply curve, and the downward sloping line is the demand curve. The point where these two lines intersect is the market equilibrium, where the quantity demanded equals the quantity supplied. Step 2: Illustrate a maximum price (price ceiling) set by the government below the equilibrium price level. This is a horizontal line drawn below the equilibrium point on the price axis. Step 3: Identify the new quantity demanded and supplied at this price ceiling. At this lower price, consumers demand more of the product (move along the demand curve to the right), but producers supply less of it (move along the supply curve to the left). This creates an excess demand or shortage in the market