This figure shows the market demand and market supply curves for good X. 10 5 10

Question

This figure shows the market demand and market supply curves for good X. 10 5 10 13 20 25 30 35 40 stit Refer to Figure 6-13. Which of the following statements is not corect? a. A price celing set at $4 would be binding, but a price ceiling set at S6 would not be binding. b. A price floor set at S7 would be binding, but a price floor set at S4 would not be binding, C A price ceiling set at $3.50 would result in a surplus. d. A price floor set at $6.50 would result in a surplus. Cliek Save and Subinit to sove and submit Clhck Sae Al Atose allwers

Explanation / Answer

The wrong statement is "C", A price ceiling set at $3.50 would result in a surplus.

At the price of $3.50, a price ceiling would be will have a shortage because at this price the demand is high and the supply would be low.

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