A price ceiling set at a. $16 will be binding and will result in a shortage of 4 units. b. $6 will be binding and will result in a shortage of 10 units. c. $6 will be binding and will result in a shortage of 6 units. d. $16 will be binding and will result in a shortage of 10 units.

A price ceiling set at $6 will be binding and will result in a shortage of 8 units.

Explanation:

In order for a price ceiling to be binding, it must be set below the equilibrium price level. In this case, $6 is below the equilibrium price of $10. It will produce a shortage of 8 units because the quantity supplied by producers will be only 6 units, while the quantity demanded by consumers will be 14 units.

Binding price ceilings always produce a deadweight loss which is represented by the area between the demand curve and the supply curve left to the equilibrium price.

answer; /// i do believe the correct answer is (possession utility);

the answer is d

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