Answer to Question #80219 in Microeconomics for Ahsan Siddiqui

Question #80219
Ananlyze the effect of a price ceiling in the market for wheat on equilibrium price and quantity. Will consumers/ producers/ both benefit because of this price ceiling? Explain using changes in consumer and producer surpluses.
1
Expert's answer
2018-08-29T12:45:09-0400
A price ceiling in the market for wheat will decrease equilibrium price and quantity and create a shortage. Some consumers will benefit, but producers will not benefit because of this price ceiling, as consumer surplus will increase and producer surplus will decrease.

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