(Figure: Determining Surplus and Loss) In the graph, if the government sets a maximum price of $5, this is an example of a(n)

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A maximum price of $5 would be below the equilibrium price of $7, meaning the maximum price would be a binding price ceiling. This would result in a shortage of the good, as the quantity demanded would exceed the quantity supplied at that price. Consumers would benefit from the lower price, while producers would suffer losses due to the reduced revenue from selling a smaller quantity of the good. The deadweight loss from the inefficiency of the market would also increase.

(Figure: Determining Surplus and Loss) in the Graph, If the Government