In equilibrium, 500 pounds of potatoes are sold each week. However, the government prints up and randomly distributes 250 non-reusable ration tickets each week, and requires that buyers present one ration ticket for each pound of potatoes they buy. Therefore consumers can purchase only 250 pounds of potatoes per week. Ration tickets can be freely bought and sold. Draw a graph illustrating the market for potatoes, and on your graph indicate:
a. The price of a pound of potatoes.
b. The price of a ration ticket.
c. The consumer and producer surplus in the potato market.
d. The value of the ration tickets to the citizens who are randomly chosen to receive them.
e. The deadweight loss.