(Answered) Question 1A commodity has a Price Ceiling at 10 dollars. Supply and demand are D = 110 – p and S=p….

➤ Why does a $10 price ceiling create a shortage and reduce efficiency?
At price $10 suppliers offer 10 units while consumers demand 100 units, producing a shortage of 90 units. This prevents mutually beneficial trades between q=10 and q=55. Those lost trades create a deadweight loss equal to the area between the demand and supply curves, reducing total economic efficiency.