Use the following to answer questions
Figure: Determining Surplus and Loss
-(Figure: Determining Surplus and Loss)In the graph,$6 would allow for an effective price ceiling.

Question

Use the following to answer questions 
Figure: Determining Surplus and Loss 
-(Figure: Determining Surplus and Loss)In the graph,$6 would allow for an effective price ceiling.

Quizplus · Accepted Answer

In the graph, the demand curve intersects with the price ceiling at a quantity of 8. If the price ceiling was lowered to $6, it would still intersect with the demand curve, allowing for a quantity demanded of 8 and creating a surplus of 2 units (8-6). Therefore, $6 would allow for an effective price ceiling.

Use the Following to Answer Questions