For this exercise you will need to first build a graph to these specifications: Draw a downward sloping demand curve with vertical intercept (0,150) and horizontal intercept (25,0). Draw a supply curve with vertical intercept (0,50) and with slope=4 i.e. the market equilibrium occurs at (10, 90).
Compute consumer, producer, and total surplus at the market equilibrium.
Label consumer surplus and producer surplus if the government imposes a price ceiling of $70, then compute deadweight loss.
Compute deadweight loss when the government imposes a price ceiling of $120.