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uppose that the government places a ceiling on the price of a medical drug below the equilibrium price. Show why there is a shortage of the medical drug at the new ceiling price. Please sketch a graph to support your explanation. B) Suppose that a black market for the medical drug arises, with pharmaceutical firms secretly selling the drug at higher prices. Illustrate on a graph, the black market for this medical drug including the implicit supply schedule, the ceiling price, the black-market supply and demand and the highest feasible black market price.
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