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The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus: When the market price is allowed

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  1. The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus:
    1. When the market price is allowed to prevail, and
    2. When the town passes a law setting a price ceiling for flank steak of $13 per pound, what is the value of the deadweight loss after the town passes that law?
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Price (dollars per pound) $21 18 . . ... Supply 15 13 Demand 11 .. . ...... 0 40 80 Quantity (pounds)Price ($ per pack) S2 S1 Tax $2.50 ...... . .. .. . .. ...: 1.50 1.25 Demand 0 18 20 Quantity (billions of packs per year)

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