The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus: When the market price is allowed to prevail, and When the town passes a law setting a price ceiling for flank steak of $13 per pound, what is the value of the deadweight loss after the town passes that law?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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  1. The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus:
    1. When the market price is allowed to prevail, and
    2. When the town passes a law setting a price ceiling for flank steak of $13 per pound, what is the value of the deadweight loss after the town passes that law? 
Price
(dollars
per pound)
$21
18
15
13
11
0
40
80
Supply
Demand
Quantity
(pounds)
Transcribed Image Text:Price (dollars per pound) $21 18 15 13 11 0 40 80 Supply Demand Quantity (pounds)
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