-Refer to Exhibit 4-3.Which of the following is true? A) If price P₁ is set as a price ceiling,the price ceiling will have an effect on the market for good X. B) If price P₁ is set as a price floor,the price floor will have an effect on the market for good X. C) Price P₁ is the equilibrium price for good X. D) If price P₁ is set as a price floor,then it is the highest price that can legally be charged in the market for good X.

Question

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The Answer of -Refer to Exhibit 4-3.Which of the following is true? A) If price P₁ is set as a price ceiling,the price ceiling will have an effect on the market for good X. B) If price P₁ is set as a price floor,the price floor will have an effect on the market for good X. C) Price P₁ is the equilibrium price for good X. D) If price P₁ is set as a price floor,then it is the highest price that can legally be charged in the market for good X.