Suppose demand is downward slopping and supply is upward slopping. If the government imposes an effective price ceiling, compare the resources allocation under different cases: Goods allocated to buyers who value them the most without competition Bribery Wasteful competition Goods allocated NOT to buyers who value them the most. Which of the following remains the same in all the 4 cases?

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Suppose demand is

downward slopping and supply is upward slopping. If the government imposes an

effective price ceiling, compare the resources allocation under different

cases:

Which of the

following remains the same in all the 4 cases?

Total loss to society

❌

Producer surplus

✅

Consumer surplus

Total social surplus

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