Price Ceiling and Price Floor

Topic: Introduction to Microeconomics — Supply: P = 2 + 0.1Q. Demand: P = 10 − 0.1Q. Equilibrium: P* = 6, Q* = 40.

Control type
None
Set price
—
Q demanded
40
Q supplied
40
Shortage / Surplus
0
DWL
0

At the free-market equilibrium, price is 6 and quantity is 40. No deadweight loss arises.