7. In our analysis of the effect of a price ceiling, we implicitly assume that consumers with the highest willingness to buy will obtain the goods despite the excess demand. In reality if the good is to be allocated on a first-come-first-serve basis consumers may have to stand in line for hours to buy the goods. Let us think about how this will affect our analysis. a. Let us assume for simplicity that consumers cannot line up themselves for the good. Instead, they must hire someone to stand in line for them and, furthermore, assume that wage for queuing service is 1HKD for hour. As a result, consumers who want to buy the good must also purchase queuing service from the queuing service market. Use a demand and supply diagram to indicate in equilibrium the number of hours each consumer will need to pay for the queuing service in order to buy the goods at the controlled price. Indicate in the diagram the consumer and producer surplus in the equilibrium. (Hint: the analysis will be similar to the case where an automobile license is needed to own a private car, except that in the car license case one license is needed per car and the price of the license is determined in equilibrium whereas in the current case the price of the queuing service is fixed but the number of hours is determined in equilibrium.) How is your answer for part a different from the analysis we went through in class where it is assumed that the goods are costlessly allocated to consumers with the highest willingness to pay. Can you try to make the case why setting a price below the equilibrium price needs not benefit the consumers? Discuss briefly and informally (in a few sentences) how your answer in part a will change if there is no queuing service market and everyone has to line up in person to buy the good