If the government required the actual market price to be fixed at $6 per unit in, Shifts of Supply and Demand

Question

If the government required the actual market price to be fixed at $6 per unit in,  Shifts of Supply and Demand

Quizplus · Accepted Answer

A price ceiling is a legal maximum price set by the government that is lower than the equilibrium price. Since the government has required the market price to be fixed at $6 per unit, this is lower than the equilibrium price, resulting in a binding or effective price ceiling. This means that the quantity demanded will exceed the quantity supplied, which will create a shortage in the market.

If the Government Required the Actual Market Price to Be