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Price ceilings are often justified as a means of helping consumers. Consider an economy where a price ceiling is introduced that causes the price to

Price ceilings are often justified as a means of helping consumers. Consider an economy where a price ceiling is introduced that causes the price to drop. How does this help consumers?

Consumer surplus increases for all consumers who were previously in the market

Overall producer surplus decreases.

Consumer surplus increases for consumers who are able to purchase the product after the price ceiling is imposed.

There is no transfer of surplus to government revenue or quota rents.

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