The graph below represents the market for flank steak in a specific town Calculate the value of consumer surplus 1) when the market price is allowed to prevail, and 2) when the town passes a law setting a price ceiling for flank steak of $13 per pound What is the value of the deadweight loss after the town passes that law Price (dollars per pound) $21 18 Supply 15 13 Demand 11 0 40 80 Quantity (pounds)Price ($ per pack) SA Tax $2 50 1 50 1 25 Demand 0 18 20 Quantity (billions of packs per year)

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Question: The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus 1) when the market price is

The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus 1) when the market price is allowed to prevail, and 2) when the town passes a law setting a price ceiling for flank steak of $13 per pound. What is the value of the deadweight loss after the town passes that law?

price is allowed to prevail, and 2) when the town passes a

law setting a price ceiling for flank steak of $13 per pound.

Price (dollars per pound) $21 18 Supply 15 13 Demand 11 0 40 80 Quantity (pounds)Price ($ per pack) SA Tax $2.50 1.50 1.25 Demand 0 18 20 Quantity (billions of packs per year)

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