Answer to Question #42471 in Microeconomics for asad
(a) Is the wheat price control in the US a price floor or a price ceiling? (1 mark)
(b) On a graph, show and explain if the price control in the US creates a shortage or a surplus in the market for wheat. Assume that the US does not trade wheat internationally. (2 marks)
(c) Show on a graph and explain how the price control in the US changes consumer surplus, producer surplus, and deadweight loss in the domestic wheat market.
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