The equilibrium price for parking in the downtown area of a large city is about $35 a day, this is represented by Pe in the graph above. The city council is looking at ways to resolve parking complaints in the city and one councilperson suggests that the maximum people should be forced to pay is $25 a day. Would this help relieve parking congestion in the city? Why or why not? 

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Price Ceilings and Parking Woes Why 25 Maximum Parking Wont Solve Congestion While a 25 maximum pric... View the full answer