*2.2 A monopoly drug company produces a lifesaving medicine at a constant cost of $5 per dose. The demand for this medicine is perfectly elastic at prices less than or equal to the $200 (per day) income of the 100 patients who need to take this drug daily.

At a higher price, consumers buy nothing. Show the equilibrium price and quantity as well as the consumer and producer surplus in a diagram. Now the government imposes a price ceiling of $50. Show how the equilibrium, consumer surplus, and producer surplus change. What is the deadweight loss, if any, from this price control?