Asked by YUKA

Given the following diagrams: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $53 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $63 per bag. The price at point e is $38 per bag. The price at point f is $74 per bag. The price at point g is $39 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions.

a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level Q1 is being produced? $
62.5
.

How large is the dollar value of the consumer surplus at the output level Q1? $


b. What is the dollar value of the deadweight loss when output level Q2 is being produced? $
.

What is the total surplus when output level Q2 is being produced? $

c. What is the dollar value of the deadweight loss when output level Q3 is produced? $


What is the dollar value of the total surplus when output level Q3 is produced? $

Answers

Answered by amanda
hih
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