Figure 6-5

-Refer to Figure 6-5.When a certain price control is imposed in 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 = $3.00,then the price control in question is

Question

Figure 6-5
 
-Refer to Figure 6-5.When a certain price control is imposed in 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 = $3.00,then the price control in question is

Quizplus · Accepted Answer

The price control results in a situation where buyers' maximum willingness to pay (P₁) exceeds sellers' minimum willingness to accept (P₂) by $3.00. This indicates a price control causing a shortage or surplus, which can occur with either a price ceiling below equilibrium or a price floor above equilibrium.

Figure 6-5 -Refer to Figure 6-5.When a Certain Price Control Is Imposed