8. High international prices for soybeans in recent years led many Argentinean farmers to switch land that had been used as pasture to raise cattle to soybean production. This resulted in a shortfall in the supply of beef.

a. Draw a supply and demand diagram to show what will happen to the equilibrium price and quantity of beef in Argentina, assuming that the demand curve does not shift.

b. In March of 2007, the Argentinean government, concerned about the rising price of beef, imposed a price ceiling on beef. Assuming that the price ceiling was equal to the original equilibrium price before the supply decreased, what effect does the price ceiling have on the quantity supplied and demanded of beef?

c. How are consumer and producer surplus affected by the price ceiling?

d. Graphically show the deadweight loss created by the price ceiling.