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Figure 6-7 A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from (0, 0) to (30, 20), and two
Figure 6-7 A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from (0, 0) to (30, 20), and two parallel demand curves, from left to right, Demand A and Demand B. Curve Demand A descends linearly from (0, 12) to (18, 0), and intersects Curve S at (9,6). Curve Demand B descends linearly from (0, 20) to (30, 0), and intersects Curve S at (15,10). Refer to Figure 6-7. Which of the following statements is not correct? a. A government-imposed price of $4 would be a binding price ceiling if market demand is either Demand A or Demand B. b. A government-imposed price of $8 would be a binding price floor if market demand is Demand A and a binding price ceiling if market demand is Demand B. c. A government-imposed price of $10 would be a binding price ceiling if market demand is either Demand A or Demand B. d. A government-imposed price of $10 would be a binding price floor if market demand is Demand A and a nonbinding price ceiling if market demand is Demand B
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