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Price Ceiling: Consumer Surplus Producer Surplus u0026 Deadweight loss

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Economics in Many Lessons

This video shows (using equations and graphs) how to find consumer surplus, producer surplus, and deadweight loss from a price ceiling.

Two extensions are given at the end of the video that show consumer surplus is overstated in the basic presentation of a price ceiling: 1) assumes consumers who buy the product have random valuations for it, and 2) assumes producers can charge underthetable payments.

posted by avoinnaraigox5w