Illustrate the following:

a. A perfectly competitive market in which the government has imposed an effective price ceiling.(Depict the "best-case scenario")

Label the following:

i. consumer surplus with the price control

ii. producer surplus with the price control

iii. quantity traded in the marketplace with the price control

iv. deadweight loss associated with the price control

v. excess demand or excess supply resulting from the price control

b. Two indifference curves to represent the preferences for Kirsten, who likes to chew her favorite gum while studying.Packs of her favorite gum come in two sizes: 15 sticks per pack and 5 sticks per pack. She does not care about the size of the packs; she only cares about how many sticks of gum she chews.(Label axes and curves fully, including specific numbers when applicable.)

c.An excise tax imposed on the producers in a perfectly competitive market with no externalities or other form of market failure.

Label the following:

i. equilibrium quantities both before and after the tax

ii. the amount the consumers pay and producers receive after the tax

iii. consumer surplus and producer surplus after the tax

iv. deadweight loss resulting from the tax

v. government tax revenue resulting from the tax