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QUESTION 2: 25 marks The Chinese government has banned the importation of coal from Australia and, as a result, Chinese power plants have run short of coal and the price of energy has increased by 20%. The government has mandated price control to shield the public from rising global energy costs. a. Briefly explain the type of price control has China mandated. [5 marks] b. Explain the impact of China's price controls policy on the markets for coal, petrol, and diesel. Illustrate your answer with the supply and demand model. [10 marks] C. Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal, petrol, and diesel. [5 marks] d. Is the outcome of China's price control policy fair? Critically discuss. Your discussion should reflect the fair rules and fair results notions of fairness. [5 marks] QUESTION 3:45 marks O W