Market demand is given as Q_D= 200 - 6P.Market supply is given as Q_S= 4P.Which legally imposed price would constitute a binding price ceiling

Question

Quizplus · Accepted Answer

A binding price ceiling is set below the equilibrium price. The equilibrium price is found by setting QD = QS: 200 - 6P = 4P, solving gives P = $20. Therefore, a price ceiling below $20, such as $15, would be binding.

Market Demand Is Given as QD = 200 - 6P

Market Demand Is Given as Q_D= 200 - 6P