Figure 6-6
-Refer to Figure 6-6.Which of the following price ceilings would be binding in this market?

Question

Figure 6-6 
-Refer to Figure 6-6.Which of the following price ceilings would be binding in this market?

Quizplus · Accepted Answer

At a price of $6, the quantity demanded exceeds the quantity supplied, resulting in a shortage. This means that the price ceiling of $6 is binding and prevents the market from reaching equilibrium. Any higher price ceiling, such as $8, $10, or $12, would not be binding as the market equilibrium price is already below those levels.

Figure 6-6 -Refer to Figure 6-6.Which of the Following Price Ceilings Would