Welfare loss triangle occur to total surplus

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Assume the equilibrium quantity is 10M of automotive wiper blades at an equilibrium price of $2 per blade. If the government imposes a limit of 8M wiper blades for the private sector in order to support an increased need for rubber in classified operations, what happens to producer and consumer surplus? Can a “welfare loss triangle” occur to total (societal) surplus?

Reference no: EM13886677

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