Assume that all landlords abide by the law. Compare the economic surplus in this market when there is no
1.) Use the triangle drawing tool to shade in the change in economic surplus as a result of the price ceiling. Properly label this shaded area indicating whether surplus has increased (new economic surplus) or decreased (
2.) Use the rectangle drawing tool to shade in transferred surplus as a result of the price ceiling. Properly label this shaded area indicating whether this surplus is transferred from producers to consumers (transfer to consumer) or from consumers to producers (transfer to producer).
Carefully follow the instructions above, and only draw the required objects.
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