Exhibit 4-3 w 0 02 Quantity of Good X Refer to Exhibit 4-3. If price P₁ is a price ceiling, then there is a surplus in the market for good X. the highest price that can legally be charged in this market is P3- O the price at which exchange legally takes place is P₂.

Exhibit 4-3 w 0 02 Quantity of Good X Refer to Exhibit 4-3. If price P₁ is a price ceiling, then there is a surplus in the market for good X. the highest price that can legally be charged in this market is P3- O the price at which exchange legally takes place is P₂.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Exhibit 4-3
P3
Price of Good X
N
S
0
Quantity of Good X
Refer to Exhibit 4-3. If price P₁ is a price ceiling, then
there is a surplus in the market for good X.
the highest price that can legally be charged in this market is P3.
the price at which exchange legally takes place is P2.
the price at which exchange legally takes place is P₁.
both a and b

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