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Question reguarding Price Ceilings and Market Price

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poweranimals On June 24, 2005




Blue Bay Harbor, Michigan
#1New Post! Jun 24, 2005 @ 05:13:35
Okay, I'm confused on this question. If anyone has ideas, it'd be greatly appreciated.

Suppose government set a price ceiling of $4 when demand and supply are as represented in the table. The market price would equal $______.

The equillibrium is $3. I wanted to include the table, but the board won't allow me to.

I know the Equillibrium is $3, and $4 is the absolute highest it's supposed to be, but I'm not sure what the market price would be.
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