Refer to the accompanying figure to answer the following questions. -The market is currently at market equilibrium.If a binding price ceiling of P₁ is imposed,by how much would the quantity demanded change? A) It would increase by 12,000 units. B) It would decrease by 30,500 units. C) It would decrease by 12,000 units. D) It would increase by 30,500 units. E) It would increase by 30,000 units.

Question

Quizplus · Accepted Answer

A binding price ceiling set below the market equilibrium price causes the quantity demanded to increase because the lower price makes the good more affordable to consumers.

Refer to the Accompanying Figure to Answer the Following Questions