In the decade that I was born, the government established price controls on consumer goods in order to combat the effects of inflation (rising prices).

a. Illustrate the market for consumer goods before the price control.

b. On the same graph, illustrate the appropriate price control and label it by its proper name.

c. The effect of this price control is:

d. Illustrate the effect of the price control on your graph.

e. As a result of the effects of the price control, what kind of market would/could arise from this?

f. Shade in the area of consumers surplus after the price control and label (CS).

g. Shade in the area of producer surplus after the price control and label (PS).

h. Shade in the area of deadweight loss after the price control and label (DWL).

i. What two market measures may government take in order to reduce the effects of the price control?