Demand/Supply question

I think it should be (a) also.

but y?

My answer was wrong. I had read the question as legal maximum price instead of legal minimum! So if the equilibrium price is $10, but the legal minimum is $8, nothing changes. It is legal for the equilibrium to continue as $10. Sneaky.

I still dont get it. the graph wd show excess demand at 8. it seems like a trick english question... i may be wrong in this assessment. is it just one business who is selling at 8 and the rest are selling at 10?... is that why nothing changes? if the entire particular industry selling at 8? in which case the equilibrium shd be 8 and what has legality to do with it? ------------------------ what i learnt from this question was to stick to one text. if you use both bpp and kaplan, you are bound to get confused due to the difference in approaches of the way the texts are set out. the exam itself was very hard. the answers were so close that u could only eliminate one option and the remaining 3 were all very very close. the questions themselves were not straightforward and needed to be really understood as in what they were asking. however, the exam tested very basic understanding of the material. the emphasis is UNDERSTANDING ... not cramming. But i do declare that F1 is an unfair paper. It touches on on many management topics that are probably semester long courses in themselves. and here we had to go thru several authors and just skimmed over what they had to say - stuff i am sure to forget. i got an 88 on the exam and i actually thought i wdnt get more than 55/60. so when the computer flashed 88.....i was in shock.

The equilibrium price for the industry is $10. All goods are selling at that. If the legal minimum is $8 the equilibrium price will stay at $10. There is no requirement toredu e prices to $8: that would only be necessary if the legal maximum were $8