Suppose in the market for apartments in Seattle the equilibrium price is $1000 a month and the equilibrium quantity is 50,000. Now assume, due to rising apartment rates, the government puts a price ceiling in place which does not allow the price of apartments to rise above $800 a month. At $800 a month, landlords supply 40,000 apartments and consumers would like to purchase 70,000 apartments.
Provide a graphical analysis of the effects of a price ceiling on consumer surplus, producer surplus and total welfare. Shade in the area that represents the deadweight loss.