Refer to the graph below, showing the market for bread. Sup…
Refer to the graph below, showing the market for bread. Suppose that price ceiling policy has been put in place, such that the price of bread is P2. Write your answers in the text box below, as (a), (b), (c) and (d). a. Which letter(s) in the graph represent(s) producer surplus under free-market conditions? b. Which letter(s) in the graph represent(s) producer surplus under the price ceiling? c. Which letter(s) in the graph represent(s) the deadweight loss associated with the price ceiling? d. Explain in your own words why there is a deadweight loss associated with this policy. (2-3 sentences)