Exhibit 4-9

-Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $13. _________ units would be exchanged in a free market,and ____________ units would be exchanged with the price ceiling in effect.

Question

Exhibit 4-9
 
-Refer to Exhibit 4-9. Suppose that the government imposes a price ceiling at a price of $13. _________ units would be exchanged in a free market,and ____________ units would be exchanged with the price ceiling in effect.

Quizplus · Accepted Answer

In a free market, the equilibrium quantity is exchanged, which is 150 units. With a price ceiling of $13, the quantity exchanged would still be 150 units if the ceiling is above the equilibrium price, as it does not affect the market.

Exhibit 4-9 -Refer to Exhibit 4-9. Suppose That the Government Imposes a the Government