Determine the shortage caused by price ceiling


Assume the price ceiling remains in place for years. Over time some maple syrup firms go out of business. A price ceiling for maple syrup caused a shortage, which led to a black market price of ($4) higher than the initial equilibrium price ($3). With the fewer firms, the supply curve in the figure shifts leftward by 10,000 bottles per month. After the shift in the supply curve: determine the shortage caused by the $2 price ceiling?

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Macroeconomics: Determine the shortage caused by price ceiling
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