Suppose that the demand curve for wheat is q 100 minus 10p


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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Business Economics: Suppose that the demand curve for wheat is q 100 minus 10p
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