The choke price is:
A)the price at which quantity supplied falls to zero.
B)the price at which quantity demanded falls to zero.
C)the price at which quantity supplied is maximized.
D)the price at which quantity demanded is maximized.

Question

Quizplus · Accepted Answer

The choke price is the price at which quantity demanded falls to zero. This means that demand has been completely choked off at this price. The choke price is the price at which quantity demanded falls to zero. This means that at the choke price, there is no demand for the good or service being provided, and therefore the supplier would not be able to sell any units even if they dropped the price further. Thus, the choke price is also known as the minimum price.

The Choke Price Is