(Solution) - Suppose equilibrium price in a market is 5 and then -(2025 Original AI-Free Solution)

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Suppose equilibrium price in a market is $5, and then a price ceiling of $3 is imposed. Assume (as in the chapter) that those who value the product the mostare able to buy whatever quantity is available, and there is no black market.
a. If supply is completely price inelastic between $3 and $5, is there a deadweight loss? Briefly, why or why not?
b. If demand is completely price inelastic between $3 and $5, is there a deadweight loss? Briefly, why or why not?