A binding price ceiling will have which of the following consequences? O There w

Question

A binding price ceiling will have which of the following consequences? O There will be downward pressure on prices until quantity demanded equals quantity supplied. There will be upward pressure on prices unti quantity demanded equals quantity supplied. O There are no consequences to a binding price celing O The quantity demanded w always exceed the quantity supplied. OThe quantity demanded wil always be smaller than the quantity supplied D Question 31 1 pts Use the information to answer the following questions Market for used cars: Demand: Q-154,000-86P Supply: Qs100 14P What would be the quantity supplied if a price floor is set at $1002 100 154,100 1,541 O 21,474 O 1,300

Explanation / Answer

30. The quantity demanded will always exceeds the quantity supplied.

Binding price ceiling means price lies below the equilibrium price where Quantity demanded is greater than Quantity supplied.

31. When price is 100 then Qs = - 100 + 14(100) = - 100 + 1400 = 1300

Answer is 1,300 units

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