If the government required the actual market price to be fixed at $6 per unit in Figure 3.2, Figure 3.3 Shifts of Supply and Demand

Question

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If the government fixes the price at $6 per unit, it would be below the equilibrium price of $8, resulting in an excess demand or shortage of the good. This would create a binding or effective price ceiling, as the price could not rise to reach equilibrium, leading to potential inefficiencies and market distortions.

If the Government Required the Actual Market Price to Be