Question
Suppose that the demand curve for wheat is Q=140-10p and the supply curve is Q=10p The government imposes a price ceiling of p=$3 per unit.
Suppose that the demand curve for wheat is Q=140-10p and the supply curve is Q=10p The government imposes a price ceiling of p=$3 per unit. Part 2 a. How do the equilibrium price and quantity? change? ?(round quantities to the nearest integer and round prices to the nearest? penny) The equilibrium quantity without the price ceiling is___ and the price without the price ceiling is ?$ ___ The equilibrium quantity with the price ceiling is___
b. What effect does this ceiling have on consumer? surplus, producer? surplus, and deadweight? loss? The change in consumer surplus? (CS) is ?$____ The change in producer surplus? (PS) is ?$____ The deadweight loss? (DWL) is ?$____
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