1. Illustrate on the diagram below, the effect of a binding price ceiling on the market for sugar. Clearly show the resulting shortage, the deadweight loss, consumer surplus and producer surplus. [3 marks]

2. Explain why a market with a binding price ceiling is inefficient. [2 marks]

1. Illustrate on the diagram below, the effect of a binding price ceiling on the market for sugar. Clearly show the resulting shortage, the deadweight loss, consumer surplus and producer surplus. [3 marks]| 2. Explain whyr a market with a binding price ceiling is inefficient. [2 marks]