Question: Hi, Please respond to this post: How does price control effect consumer and producer surplus? Price control is done through the process of a price

Hi,

Please respond to this post:

How does price control effect consumer and producer surplus?

Price control is done through the process of a price ceiling or price floor. Price ceiling and price floors are a type of price control that allows the government to set the maximum or minimum price of a product. If the government sets the legal price, the price control of the product causes the equilibrium quantity to change. When the floor price is less than equilibrium, there is no impact. If the equilibrium price of a product is said to be unfair, a price control is set in a market to help control this. From the previous chapter, we know that a surplus exists when quantity supplied is higher than the quantity demanded and the other way around for a shortage to happen.

My question to you is, what effect does equilibrium have on price ceiling and price floors?

How does price control effect consumer and producer surplus. Provide an example.

What is deadweight and how does it exist in producer and consumer surplus.

Source:https://corporatefinanceinstitute.com/resources/knowledge/economics/price-ceiling/#:~:text=The%20ceiling%20price%20is%20binding%20and%20causes%20the,deadweight%20loss%20is%20created%20from%20the%20price%20ceiling.

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