Suppose that the demand curve for wheat is Q = 100 10p and the supply curve

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Suppose that the demand curve for wheat is Q = 100 – 10p and the supply curve is Q = 10p. The government imposes a price ceiling of p = 3.
a. Describe how the equilibrium changes.
b. What effect does this price ceiling have on consumer surplus, producer surplus, and deadweight loss?
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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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