Market demand is given as Q_D= 45 - P.Market supply is given as Q_S= P + 15.Which legally imposed price would constitute a binding price floor

Name: Market demand is given as Q D = 45 - P.Market supply is given as Q S = P + 15.Which legally imposed price would constitute a binding price floor
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Question

Quizplus · Accepted Answer

A binding price floor is set above the equilibrium price. The equilibrium price is found where Q_D = Q_S, which is at P = 15. Therefore, a price floor of $20 would be binding.

Market Demand Is Given as QD = 45 - P

Market Demand Is Given as Q_D= 45 - P