Exhibit 4-1
Refer to Exhibit 4-1. Some buyers will offer sellers $7 per unit instead of the $6 price ceiling because

Question

Exhibit 4-1 
Refer to Exhibit 4-1. Some buyers will offer sellers $7 per unit instead of the $6 price ceiling because

Quizplus · Accepted Answer

Buyers offering a higher price than the price ceiling ($7 instead of $6) indicates that they are willing to pay more to increase their chances of buying a good for which there is a shortage. This behavior is driven by the shortage resulting from the price ceiling, which creates excess demand (quantity demanded exceeds quantity supplied at the price ceiling). By offering a higher price, buyers can increase their chances of being able to purchase the good.

Exhibit 4-1 Refer to Exhibit 4-1. Some Buyers Will Offer Sellers $7