Theoretically suppose the government imposes a binding price ceiling in the tilapia fish market. Draw a supply-and-demand diagram to show the effect of this policy on the price and the quantity of tilapia sold (actual and ideal quantity as discussed in class). Shade the area of deadweight loss. a. Is there a shortage or surplus of tilapia? b. Which party benefits because of the price ceiling? c. Do you think it's a good idea for the government to impose a price ceiling? Why or why not?

Theoretically suppose the government imposes a binding price ceiling in the tilapia fish market. Draw a supply-and-demand diagram to show the effect of this policy on the price and the quantity of tilapia sold (actual and ideal quantity as discussed in class). Shade the area of deadweight loss. a. Is there a shortage or surplus of tilapia? b. Which party benefits because of the price ceiling? c. Do you think it's a good idea for the government to impose a price ceiling? Why or why not?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 5QP

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Question

Theoretically suppose the government imposes a binding price ceiling in the tilapia fish market. Draw a
supply-and-demand diagram to show the effect of this policy on the price and the quantity of tilapia sold
(actual and ideal quantity as discussed in class). Shade the area of deadweight loss.
a. Is there a shortage or surplus of tilapia?
b. Which party benefits because of the price ceiling?
c. Do you think it's a good idea for the government to impose a price ceiling? Why or why not?

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