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28-11-2022
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Figure 6P−1 shows a market in equilibrium.
a. Draw a price ceiling at $12. What is the amount of shortage at this price? Draw and calculate the deadweight loss. [LO 6.1]
b. Draw a price ceiling at $4. What is the amount of shortage at this price? Draw and calculate the deadweight loss. [LO 6.1]

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