3 VERSIONS A & B 3 ) [ 10 points ] Suppose that the government decides that the price of milk in the competitive market is too high , and imposes a price ceiling below the equilibrium price . Use graphs of supply and demand to show the specific effects of this policy , and argue that a price ceiling is an inefficient policy . In your opinion , is this policy fair ? Make a strong argument for why or why not . Below is a sample graph of a price ceiling in the market for milk . Since we gave you no quantities or prices , the important points of the graph are the following : 1 . Graph is set up correctly with a supply and demand curve , axes are correctly labeled ( graphs need not include specific numbers ) , and a binding price ceiling is included on the graph , below equilibrium . 2 . Consumer surplus , Producer surplus , and deadweight loss are identified