## Inefficiency of Price Floors and Price Ceilings

Now, let's attempt several practical problems related to price controls. Answer the "Try It" questions here.

### Try It

Consider the market for corn flour below and assume that a price ceiling of $2 is imposed. Calculate the deadweight loss: • The deadweight loss is$3,000
• The deadweight loss is $1,500 • The deadweight loss is$1,000