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Price is listed from 2 to 20 (increasing by 2) on the vertical axis and quantity is listed on the horizontal axis starting at 10
Price is listed from 2 to 20 (increasing by 2) on the vertical axis and quantity is listed on the horizontal axis starting at 10 and going up to 100 increasing by 10. Demand and supply curves are in equilibrium at P=10 and Q=50. Three horizontal lines are drawn to show the price controls effect on the market. One is drawn at P=14, second at P=12 and the third at P=8.
Given that the equilibrium price is $10, at which price would there be a binding price ceiling?
a. | $8.00 | |
b. | $10.00 | |
c. | $12.00 | |
d. | $14.00 |
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