Use the diagram to answer the following questions (ac). a. At the initial equilibrium price, what area

Use the diagram to answer the following questions (a–c).

a. At the initial equilibrium price, what area represents consumer surplus? What area represents producer surplus?
b. After the price ceiling is imposed, what area represents consumer surplus? What area represents producer surplus?
c. What area represents the deadweight loss cost of the priceceiling?

Transcribed Image Text:

Supply Price Ceiling Demand 0 Q. 0 Quantity