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Figure: Understanding Price Ceilings and Floors
-(Figure: Understanding Price Ceilings and Floors)In the graph,which price would NOT allow for an effective price ceiling?

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Use the following to answer questions 
Figure: Understanding Price Ceilings and Floors 
-(Figure: Understanding Price Ceilings and Floors)In the graph,which price would NOT allow for an effective price ceiling?

Quizplus · Accepted Answer

An effective price ceiling must be set below the equilibrium price to be binding. If $60 is the equilibrium price, a price ceiling at $60 would not be effective.

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