Exhibit 4-3 -Refer to Exhibit 4-3.Which of the Following Is True

Exhibit 4-3

-Refer to Exhibit 4-3.Which of the following is true?

A) If price P₁ is set as a price ceiling it will have an effect on the market for good X.
B) If price P₁ is set as a price floor it will have an effect on the market for good X.
C) Price P₁ is the equilibrium price for good X.
D) If price P₁ is set as a price floor, then it is the highest price that can legally be charged in the market for good X.