Market demand is given as Q_D= 75 - 2P.Market supply is given as Q_S= 3P.Which legally imposed price would constitute a binding price ceiling

Name: Market demand is given as Q D = 75 - 2P.Market supply is given as Q S = 3P.Which legally imposed price would constitute a binding price ceiling
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Question

Quizplus · Accepted Answer

A binding price ceiling is set below the equilibrium price. The equilibrium price is found where QD = QS, which is at P = $15. Therefore, a price ceiling of $14 would be binding as it is below the equilibrium price.

Market Demand Is Given as QD = 75 - 2P

Market Demand Is Given as Q_D= 75 - 2P