-Refer to the graph above to answer this question.If the government imposes an effective price ceiling of $4,what will be the illegal market price and quantity traded in the market?

Question

Quizplus · Accepted Answer

An effective price ceiling is set below the equilibrium price, causing a shortage. The illegal market price will rise to the equilibrium price of $6, and the quantity traded will be limited to the quantity supplied at the ceiling price, which is 30 units.

-Refer to the Graph Above to Answer This Question