Figure 6-2
-Refer to Figure 6-2.The price ceiling

Name: Figure 6-2 -Refer to Figure 6-2.The price ceiling
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Question

Figure 6-2 
-Refer to Figure 6-2.The price ceiling

Quizplus · Accepted Answer

The price ceiling is set below the equilibrium price, which means that it is not binding. Therefore, the market will still produce and sell the good at the equilibrium price of $6, which is higher than the price ceiling. As a result, there will be no shortage or surplus of the good. The price ceiling is irrelevant in this scenario.

Figure 6-2 -Refer to Figure 6-2.The Price Ceiling