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Explain how to solve? Given the following diagram: Price Floors and Ceilings In. GRAPH SETTINGS Reset points Price ($) Price Floor Price Ceiling Skipped 9

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Given the following diagram: Price Floors and Ceilings In. GRAPH SETTINGS Reset points Price ($) Price Floor Price Ceiling Skipped 9 S 8 Price Floor Book 7 P 6.00 Price Floor References P 5 . . . . . 4 in. . . . . . . . . . . . . . . . . .. Price 3 2 D 1 5 10 15 30 35 40 45 Price Adjustment Quantity Instructions: Under settings, click "Price Ceiling" to select it. When it is selected, it will be highlighted in dark blue.Instructions: Under settings, click "Price Ceiling" to select it. When it is selected, it will be highlighted in dark blue. a. What is the equilibrium price and quantity in the absence of a price ceiling? P=$|:|Q= |:|units b. What is the prevailing price and quantity if a price ceiling is set at $4.00? P= $|:|Q= |:|units C. Is the price ceiling at $4.00 effective (binding)? (Click to select) : d. What is the prevailing price and quantity if the price ceiling is set at $6.00? P=$|:|Q= |:|units e. Is the price ceiling at $6.00 effective (binding)? (Click to select) Instructions: Under settings, click "Price Ceiling" to select it. When it is selected, it will be highlighted in dark blue. a. What is the equilibrium price and quantity in the absence of a price ceiling? P = $ = units b. What is the prevailing price and quantity if a price ceiling is set at $4.00? P = $ Q units c. Is the price ceiling at $4.00 effective (binding)?

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