6.14 Suppose that the demand curve is Q = 100 - 10p and the supply curve is...

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6.14 Suppose that the demand curve is Q = 100 - 10p and the supply curve is Q = 10p. The government imposes a price ceiling of p = 3.

a. Describe how the equilibrium changes.

b. What effect does this ceiling have on consumer surplus, producer surplus, and deadweight loss?

(Hint: See Solved Problem 9.7.)

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Microeconomics

ISBN: 9780133456912

7th Edition

Authors: Jeffrey M. Perloff

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