Figure 3.3 Shifts of Supply and Demand
If the government required the actual market price to be fixed at $6 per unit in Figure 3.3:

Question

Figure 3.3 Shifts of Supply and Demand
 If the government required the actual market price to be fixed at $6 per unit in Figure 3.3:

Quizplus · Accepted Answer

A price ceiling is a maximum price that can be charged for a good or service, and if the government requires the market price to be fixed at $6 per unit, it would act as a binding or effective price ceiling as the equilibrium price is higher than the mandated price. This would create a shortage of the product in the market as the quantity demanded would exceed the quantity supplied at the mandated price.