Let€™s measure consumer surplus if the government imposes price controls and goods end up being randomly allocated among those consumers willing to pay the controlled price. If the demand and supply curves are as in the figure, then:
a. What is consumer surplus under the price control?
b. What would consumer surplus be if the quantity supplied were 1,000 but the goods were allocated to the highest-value users?

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Price $110 100 Supply Controlled price Demand 1,000 4000 Qantity