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60 40 2 22 32 47 Suppose the government intervenes in this perfectly competitive market and implements a binding price A (floor/ceiling) at $60 per
60 40 2 22 32 47 Suppose the government intervenes in this perfectly competitive market and implements a binding price A (floor/ceiling) at $60 per unit. This would create a A (surplus/shortage) of A (number) units. This would create a deadweight loss of A (number) dollars and decrease consumer surplus from A/ (number) to A (number) which is a difference of A dollars. On the other hand, producer surplus would increase from A (number) to A (number) which is a difference of A (number) dollars
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