Question: b. Calculate the equilibrium price and quantity in a free market; then calculate consumer and producer surplus. c. How will a 1-Pfennig price ceiling affect

b. Calculate the equilibrium price and quantity in a free market; then calculate consumer and producer surplus.

c. How will a 1-Pfennig price ceiling affect the price paid by consumers for beer? How will it affect the quantity consumed?

d. Calculate the consumer surplus received by beer drinkers and the producer surplus received by beer producers after the 1-Pfennig price ceiling is imposed.

e. Does the price ceiling make society better off? Does it make beer producers better off? Does it make beer drinkers better off?

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