Markets · Tool 03

Price Controls

Price ceiling and price floor effects on equilibrium, surplus, and deadweight loss

Demand: P = a − bQ
a (intercept)80
b (slope)0.8
Supply: P = c + dQ
c (intercept)10
d (slope)1.4
Control type
Ceiling price
Pceiling35
Supply and demand diagram with price control Interactive diagram showing supply, demand, equilibrium and price control effects
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Built with Claude · Amit Goyal · amit.goyal@nyu.edu
More is preferred to less.