(Figure: Random Allocation under Price Ceilings) Refer to the figure. The government enacted a price ceiling of $6 per unit. Using the information provided in the graph, calculate the following: Figure: Random Allocation under Price Ceilings a. If the goods are allocated randomly between the high-value uses and the low-value uses, what is the total amount of consumer surplus in dollars? b. What is the lost amount of consumer surplus when goods are allocated randomly, when compared to a situation where the goods are allocated only to the highest value uses?

Question

(Figure: Random Allocation under Price Ceilings) Refer to the figure. The government enacted a price ceiling of $6 per unit. Using the information provided in the graph, calculate the following: Figure: Random Allocation under Price Ceilings  a. If the goods are allocated randomly between the high-value uses and the low-value uses, what is the total amount of consumer surplus in dollars? b. What is the lost amount of consumer surplus when goods are allocated randomly, when compared to a situation where the goods are allocated only to the highest value uses?

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The Answer of (Figure: Random Allocation under Price Ceilings) Refer to the figure. The government enacted a price ceiling of $6 per unit. Using the information provided in the graph, calculate the following: Figure: Random Allocation under Price Ceilings  a. If the goods are allocated randomly between the high-value uses and the low-value uses, what is the total amount of consumer surplus in dollars? b. What is the lost amount of consumer surplus when goods are allocated randomly, when compared to a situation where the goods are allocated only to the highest value uses?

(Figure: Random Allocation Under Price Ceilings) Refer to the Figure