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Assume the government wants to control the rising price of natural gas which has the following functions Qd = -10P + 250 and Qs = 15P - 100. To enact this price control, a price ceiling of $10 is placed on natural gas :
a. Graphically show how the price ceiling would affect the natural gas market. Be sure to include all intercepts and equilibrium values in this graph and show the areas on the horizontal axis that makes up winners, losers, and the shortage.
b. Mathematically calculate the amount of shortage in the market, and the number of winners and losers found in this market.
c. Graphically show how the market for substitute goods to natural gas would be impacted when this price ceiling is placed in the market for natural gas.
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