Explain how Venezuela’s price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for milk and cheese. Draw a graph to illustrate your answer.

The government of Venezuela controls the price of food and there are shortages of milk, rice, coffee, pasta, sugar, corn flour, and cooking oil. Eggs have disappeared from store shelves. While people stand in line for milk, cheese and yogurt are abundant. People who buy milk at the low price either sell it for a profit or exchange it for food items that other families stand in line to buy.