Question

Argue in favor or against a government enforced price ceiling for surgical masks during a pandemic. Which side of the argument you take doesn't matter: whether it's in favor or against a price ceiling, the economic justification matters the most.

Answer 1

The price ceiling is imposed at PX which is below the equilibrium and sets a maximum price at which the good can be traded in the market where quantity = QSX

I am in for the introduction of the price ceiling on the good during a pandemic because during the pandemic, the demand increases rapidly which will induce the firms to make more profit and charge more than the market price so the price ceiling will keep the price of the good in check but lead to some deadweight loss = B+D in the market