Suppose the supply and demand schedules for cell phones are as follows:

a. Find equilibrium price and quantity in the cell phone market.
b. Find consumer surplus, producer surplus, and total surplus in the cell phone market.
c. Suppose the government sets a maximum price (that is, a price ceiling) of $6. How many cell phones are traded in the market at $6?
d. Find consumer surplus, producer surplus, government tax revenue, and total surplus now that there is a price ceiling of $6.
e. Find the deadweight loss from the price ceiling.
f. Suppose the government sets a minimum price (that is, a price floor) of $10. How many cell phones are traded in the market at $10?
g. Repeat parts (d) and (e) for this price floor.

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Demand Supply Price $2 S3 S4 S5 S6 S7 $8 S9 S10 $11 S12 10