Figure 6-6

-Refer to Figure 6-6. When a certain price control is imposed on this market, the resulting quantity of the good that is actually bought and sold is such that buyers are willing and able to pay a maximum of P₁ dollars per unit for that quantity and sellers are willing and able to accept a minimum of P₂ dollars per unit for that quantity. If P₁ − P₂ = $3, then the price control is

Question

Figure 6-6

-Refer to Figure 6-6. When a certain price control is imposed on this market, the resulting quantity of the good that is actually bought and sold is such that buyers are willing and able to pay a maximum of P₁ dollars per unit for that quantity and sellers are willing and able to accept a minimum of P₂ dollars per unit for that quantity. If P₁ − P₂ = $3, then the price control is

Quizplus · Accepted Answer

The difference of $3 between what buyers are willing to pay and what sellers are willing to accept indicates a price control is in place, creating a discrepancy. This could be due to a price ceiling that is set below the equilibrium price, making buyers willing to pay up to $3 more than the controlled price, or a price floor set above the equilibrium price by $3, making sellers willing to accept $3 less. The specific amounts ($3.00 or $6.00) cannot be determined without more context, but the presence of a $3 difference suggests a distortion typical of either a price ceiling or a price floor.

Figure 6-6 -Refer to Figure 6-6. When a Certain Price Control Is