When there’s no intervention, the equilibrium quantity is Q1…
When there’s no intervention, the equilibrium quantity is Q1 and the equilibrium price is PE. Suppose the government decides to impose a price ceiling in this market, as it thinks that PE is too high. With the price ceiling, price goes down to Pc, and because of that quantity drops to Q2. Price Ceiling text only Based with the figure above, match the surplus with the correct areas: Words: 2 Characters: 19
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