Figure 6-7

-Refer to Figure 6-7. Which of the following statements is not correct?
A)A government-imposed price of $12 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand B.
B)A government-imposed price of $15 would be a binding price ceiling if market demand is either Demand A or Demand B.
C)A government-imposed price of $6 would be a binding price ceiling if market demand is either Demand A or Demand B.
D)A government-imposed price of $15 would be a binding price floor if market demand is Demand A and a nonbinding price ceiling if market demand is Demand B.

Question

Figure 6-7
 
-Refer to Figure 6-7. Which of the following statements is not correct?
A)A government-imposed price of $12 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand B. 
B)A government-imposed price of $15 would be a binding price ceiling if market demand is either Demand A or Demand B. 
C)A government-imposed price of $6 would be a binding price ceiling if market demand is either Demand A or Demand B. 
D)A government-imposed price of $15 would be a binding price floor if market demand is Demand A and a nonbinding price ceiling if market demand is Demand B.

Quizplus · Accepted Answer

A price ceiling of $15 would not be binding if the equilibrium price is below $15 for either demand curve, as it would not restrict the market price.

Figure 6-7 -Refer to Figure 6-7. Which of the Following Statements Is