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I want the answer for B. please A political leader comes to you and wonders from whom she will get the most complaints If she

I want the answer for B. please

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A political leader comes to you and wonders from whom she will get the most complaints If she Institutes a price celling when deman Is Inelastic and supply Is elastic. a. How do you respond? Consumers will likely complain the most because their Inelastic demand leads to a much higher quantity demanded with a price ceiling. This Increased quantity demanded cannot be met because suppliers lower their output when a price celling is put In place. Producers will likely complain the most because a price celling is an implicit tax on producers and an implicit subsidy to consumers. Some producer surplus is transferred to consumers. Relative elasticities don't matter. Producers will likely complain the most because they are forced to limit the quantity supplied. This decrease leads to lower revenues and hence lower profits. Relative elasticities don't matter. Although consumers will pay a lower price with the price celling, fewer trades will occur. Consumers will likely complain the most because the Inelastic demand suggests consumers have few alternatives. b. Demonstrate why your answer is correct. Instructions: On the graph below, use the tool "CS' to show the consumer surplus after the price ceiling. Then use the tool 'PS' to show the producer surplus after the price celling. Finally, use the tool 'DWL' to show the deadweight loss after the price ceiling. Consumer and Producer Surplus with a Price Celling 16 Tools 14 CS PS 12 10 DWL Price Price Ceiling N 8 10 4 16 Quantity

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