The graph below represents the demand and supply in a perfectly competitive market. Under perfect competition, the consumer surplus is CS= v . The government is deciding whether or not to introduce a price ceiling. If the government introduces a $12 price ceiling, then the new consumer surplus will be CS= v _ Therefore, this price ceiling would result in a net v of consumer surplus (select gain or loss). A perfectly competitive market has the following demand and supply: 0 = 400 - 10p 05 = 40p Suppose the government introduces a $20 tax on each unit sold. The total tax revenue will be v . Now let's consider the tax burden. Out of the $20 tax, consumers pay $ v and producers pay $ A perfectly competitive market has the following demand and supply: on = 900 - 10p 05 = 40p Suppose the government introduces a $5 subsidy on each unit sold. The total subsidy cost for the government will be v . Now let's consider how this subsidy affects consumers and producers. Out of the $5 subsidy, consumers receive $ v and producers receive $ v