I am having one problem, which I do not understand. Let's assume the government applies ceiling price below the equilibrium price. I colored it red in my graphs.
Of course, supply would decrease, there would be a shortage. But why does everyone plot the supplier and consumer surplus as it is in the left picture?
Let's think about it. If the government says the new price is N dollars for something, this means that there are a lot more people who are willing to pay the N price. I just don't understand why we always plot it like those who are willing to pay the most will get it, since new N dollar price is now acceptable for many more people and they would grab for an item as fast as those who are willing to pay the most. What I am trying to say is, if there is a ceiling price for something, it's not affordable only for those who are willing to pay the most but by everyone who is willing to pay above the threshold of ceiling price. But I see no one plotting the model as I did on the right side of the picture. Could you please explain to me why?