Suppose demand is given by P = 60 - Q and supply is given by P =
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Question:
Suppose demand is given by P = 60 - Q and supply is given by P = 24 + 2Q. The government imposes a price ceiling of $40 in this market.
- After the price ceiling is implemented, what happens to consumer surplus? (increases, decreases, no change)
- After the price ceiling is implemented, what is the size of the deadweight loss? (Just type the number; do not include a dollar sign.)
- After the price ceiling is implemented, what is the size of the shortage in the market? (Just type the number; do not include any text or units.)
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