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Consider an equilibrium market in the first place. Assume the government

decides to impose a price ceiling forcing companies to sell their product below the equilibrium price at a price.


a) How is the price ceiling going to affect the total amount sold?


b) How are the surplus producer and the surplus consumer impacted?


c) Does the price ceiling apply equally to all consumers? Clarify


d) Does the new situation work (efficient)? Please give your Explanation.

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