1. Business
2. Economics
3. suppose that the demand curve for wheat is q120 ...

# Question: suppose that the demand curve for wheat is q120 ...

###### Question details

Suppose that the demand curve for wheat is

Q=120 - 10p

and the supply curve is

Q=10p

The government imposes a price ceiling of

p= $4 per unit per unit. a. How do the equilibrium price and quantity​ change? ​(round quantities to the nearest integer and round prices to the nearest​ penny) The equilibrium quantity without the price ceiling is 60 and the price without the price ceiling is ​$6.

The equilibrium quantity with the price ceiling is

40.

B) What effect does this ceiling have on consumer​ surplus, producer​ surplus, and deadweight​ loss?

The change in consumer surplus​ (CS) is ​$_____ ​(round your answer to the nearest​ penny). The change in producer surplus​ (PS) is ​$ _____(round your answer to the nearest​ penny).

The deadweight loss​ (DWL) is ​\$ _____ (round your answer to the nearest​ penny).

###### Solution by an expert tutor 