Suppose the market is initially in equilibrium. The government decides to impose...
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Suppose the market is initially in equilibrium. The government decides to impose an effective price ceiling, then the price control generally
(I) Causes the producer surplus to decrease, relative to the initial equilibrium
(II) Causes the consumer surplus to decrease, relative to the initial equilibrium
(III) Causes the total surplus to decrease, relative to the initial equilibrium
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