Assume the Government chose to set a price control on the products in your industry, would
it be more likely to be a price floor or a price ceiling? What are your reasons for your answer?
Question 4.2:
Given your answer in question 4.1 above, please explain how the price and quantities of the products in the market for your industry would change by reference to a fully labelled diagram.
Question 4.3:
Given your answer in question 4.2 above, please explain how the economic surplus in the market for your industry would change by reference to a fully labelled diagram.
