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Given the diagram below if there is government intervention in the market and the maximum price is set at $4: a) is it a price
Given the diagram below if there is government intervention in the market and the maximum price is set at $4: a) is it a price ceiling or price floor - where is illegal area (0.5 points) b) calculate consumer surplus (calculation should be visible) (0.5 points) c) calculate producer surplus (calculation should be visible) (0.5 points) d) deadweight loss if any (calculation should be visible) (0.5 points) e) Is this market efficient? Explain your opinion. (0.5 points) 11- 10- 9+ A 8- 7- B 6- 5- D E D 4-- - - F 3- 2 3 5 6
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