1.Using an Edgeworth Box, explain why imposing a price ceiling on one good

can lead to a socially inefficient outcome.

2.Using a separate diagram, show that it is possible for one person to be better

off with the price ceiling than when there is a "competitive" price;

3.Using another diagram, show that it is not possible forbothconsumers to be

better off because of the price ceiling compared to the case with no price ceiling.