Competitive market without government interventions

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Suppose that in a competitive market without government interventions, the market equilibrium is Q* and P*. Graphically show the consumer surplus, the producer surplus and the social surplus under the following government interventions

a) The government sets a Quantity control, mandating that producers have to sell the good at a quantity Q > Q*.

b) The government sets a price control, mandating that producers can only sell the good at a price P < P*.

Reference no: EM131004861

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