Five Minute Exercises > Effect of a Price Ceiling (+)

Graph of the market

The graph of the market is shown below.  The ceiling changes CS by A-B and PS by -(A+C).  It thus transfers A from producers to consumers and creates DWL equal to B+C.

Site Index | Zoom | Admin
URL: https://wilcoxen.maxwell.insightworks.com/pages/4013.html
Peter J Wilcoxen, The Maxwell School, Syracuse University
Revised 10/07/2014