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2 30 points suppose that the demand supply for rice...

Question: 2 30 points suppose that the demand supply for rice...

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(2) (30 points) .Suppose that the demand supply for rice is as follows: Cantrel Pe The equilibrium price is PE and the equilibrium quantity is QF in free market. (1) What area can represent the consumer surplus and producer surplus? (2) If government want to control the rice price level at Por what area can represent the consum surplus and producer surplus in this case? (3) What kind of policies can fulfill this target? Give some specific example. What is t governments surplus in this case. Draw another graph and color this area

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