Question
The price of a 500 count 200mg bottle of Ibuprofen is $8.50. In a typical month the number of bottles sold is QD. The U.S.
The price of a 500 count 200mg bottle of Ibuprofen is $8.50. In a typical month the number of bottles sold is QD. The U.S. government is concerned that low-income families can't afford Ibuprofen at this price. They decide to impose a price ceiling (maximum price) of $6. Illustrate in a diagram the current market situation and then show the effect a price ceiling will have. What will happen to overall purchases of Ibuprofen? Will low-income people be able to consume more Ibuprofen after the price ceiling is imposed? What other unintended consequences might occur?
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