Table 6-1
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market.

$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Price } \
\text { (Dollars per unit) }
\end{array} & \begin{array} { c }
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Quantity Supplied } \
\text { (Units) }
\end{array} \
\hline 0 & 15 & 0 \
\hline 1 & 13 & 3 \
\hline 2 & 11 & 6 \
\hline 3 & 9 & 9 \
\hline 4 & 7 & 12 \
\hline 5 & 5 & 15 \
\hline 6 & 3 & 18 \
\hline
\end{array}$$
-Refer to Table 6-1. Following the imposition of a price floor $2 above the equilibrium price, irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor. The resulting market price is

Question

Table 6-1
The following table contains the demand schedule and supply schedule for a market for a particular good. Suppose sellers of the good successfully lobby Congress to impose a price floor $2 above the equilibrium price in this market.
​
 $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Price } \
\text { (Dollars per unit) }
\end{array} & \begin{array} { c } 
\text { Quantity Demanded } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Quantity Supplied } \
\text { (Units) }
\end{array} \
\hline 0 & 15 & 0 \
\hline 1 & 13 & 3 \
\hline 2 & 11 & 6 \
\hline 3 & 9 & 9 \
\hline 4 & 7 & 12 \
\hline 5 & 5 & 15 \
\hline 6 & 3 & 18 \
\hline
\end{array}$$
-Refer to Table 6-1. Following the imposition of a price floor $2 above the equilibrium price, irate buyers convince Congress to repeal the price floor and to impose a price ceiling $1 below the former price floor. The resulting market price is

Quizplus · Accepted Answer

The equilibrium price is where the quantity demanded equals the quantity supplied, which is at $3 (9 units). A price floor $2 above this would be $5. If a price ceiling is then set $1 below this new floor, the resulting price is $4. However, the question specifically asks for the market price after the imposition of the price ceiling, which would actually revert to the equilibrium price of $3 because the ceiling is above the equilibrium price, allowing the market to naturally settle at the equilibrium.

Table 6-1 the Following Table Contains the Demand Schedule and Supply

Table 6-1
the Following Table Contains the Demand Schedule and Supply