Question
A price ceiling that is below the equilibrium price for a good will end up a. decreasing the quantity demanded of the good. b. increasing
A price ceiling that is below the equilibrium price for a good will end up
a. decreasing the quantity demanded of the good.
b. increasing the quantity demanded of the good
c. increasing the quantity supplied of the good.
d. leaving the quantity supplied of the good unchanged, even if the supply curve is upward sloping.
e. none of the above
The equilibrium price for good X is $4. A price ceiling is imposed on good X at $2. The quantity supplied of good X at $2 is 100 units. The highest price per unit that good X can sell for if all 100 units are to be sold is $8. If good Y is tied to the sale of good X, then the highest price that Y can be sold for is:
a. $4
b. $2
c. $6
d. $8
e. there is not enough information to answer the question
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