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The figure below shows a market in equilibrium, Price ($) Ceilings 22 20 18 Tools A. DWL 16 14 12 Ceiling2 10 8 6
The figure below shows a market in equilibrium, Price ($) Ceilings 22 20 18 Tools A. DWL 16 14 12 Ceiling2 10 8 6 4 2 D 0 O 2 4 6 B 10 12 14 Quantity a. Draw a price ceiling at $12. Instructions: Use the tool provided (Ceiling) to draw the price ceiling. The amount of shortage at this price is The deadweight loss is $[ b. Draw a price ceiling at $4. unit(s). Instructions: Use the tool provided (Ceiling2) to draw the price ceiling. The amount of shortage at this price is unit(s). Draw the deadweight loss associated with this price ceiling. Instructions: Use the tool provided (DWL) to draw the deadweight loss for a price ceiling of $4. The deadweight loss is $
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