$10 $7 $6 $5.50 $2 Regulated Price Demand 3 4 5 8 Quantity 1. (5 points) Under one form of government price regulation, the government sets the price at a level (which is equal to $2 in the above graph) and the rm then sets MC equal to the regulated price to determine prot maximizing quantity at the regulated price. (a) What price will an unregulated monopoly charge? (b) What quantity will an unregulated monopoly produce? (c) If the regulated price is $2 per unit, how many units will the regulated monopoly produce? (d) What is the quantity demanded at the regulated price of $2? Is there a surplus or a shortage or neither at the regulated price? (e) If the regulated price were set at $5.50, would there be any deadweight loss? You do not have to calculate deadweight loss, just state whether it exists at the regulated price