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Consider the diagram below. Which of the variables (consumer surplus, producer surplus, deadweight loss, and market price) have increased due to the price ceiling of
Consider the diagram below. Which of the variables (consumer surplus, producer surplus, deadweight loss, and market price) have increased due to the price ceiling of $1,500 for rent? Price (monthly rent) $4000 $3500 Supply $3000 Deadweight Consumer Loss $2500 Surplus $2000 $1500 Maximum Price $1000 Producer Surplus $500 Demand 0 1 2 3 4 5 6 Quantity of Apartments (in millions) O a.) Consumer surplus and market price b.) Producer surplus and deadweight O loss (c.) Producer surplus and market price d.) Consumer surplus and deadweight O loss
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