Price Ceiling/ Rent Ceiling - Welfare AnalysisDate Added 14/09/2015Views 385Flag as inappropriate
What happens when a price ceiling is set below the market equilibrium - making the equilibrium pice illegal in the market. This creates shortage, but what about changes in consumer and producer surplus and is there any dead weight loss? How do we measure these.
To know : Area of a square - L * W Area of a triangle - !/2 * B * H
Consumer Surplus - surplus generated from the difference between the maximum a consumer was willing to pay for the good (definition of the demand function) and the actual price she pays for the good.