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A $6 price ceiling would be legally binding because it is a government-mandated maximum price that is lower than the equilibrium price.
Any Price ceiling that is below the market equilibrium is a binding Price ceiling. As prices want to go up the market price but due to this ceiling, can not go higher. So it is an effective price ceiling as it binds the market price for this good.
A binding price ceiling occurs when the government imposes a required price on a good or goods that is less than the equilibrium price. Because the government requires that prices do not rise above this level, that price effectively binds the market for that good.
Businesses will not produce enough of those goods to satisfy the market because the government artificially keeps the price low. As a result, there is an insufficient supply of those goods, resulting in a shortage of those goods.
To learn more about binding Price ceiling, please refer:
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