Consider the market for burritos in a hypothetical Canadian city, blessed with thousands of students and dozens of small burrito stands. The demand and supply schedules are shown in the table.

a. Graph the demand and supply curves. What is free-market equilibrium in this market?
b. What is the total economic surplus in this m in the free-market equilibrium? What area in your diagram represents this economic surplus?
c. Suppose the local government, out of concern for the students€™ welfare, enforces a price ceiling on burritos at a price of $1.50. Show in your diagram the effect on price and quantity exchanged.
d. Are students better off as a result of this policy Explain.
e. What happens to overall economic surplus in this market as a result of the price ceiling? Show this in the diagram.

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Quantity Demanded Quantity Supplied Price (S) (thousands of burritos per month) 1.00 1.50 2.00 2.50 3.00 3.50 4.00 5.00 500 400 350 300 250 200 150 100 125 175 200 225 250 275 300 325 375