Based on the answers calculated here, what we can infer? Consumer surplus = Area of A+B+E =((30-20) x 2000/2) = 10000 Producer surplus = Area of C+D+F =((20-10) x 2000/2) = 10000 New Consumer surplus = Area of A+B+C = 2500+5000+5000 = 12500 Increase in consumer surplus = C - E =5000-2500 = 2500 New producer surplus = Area of D = 2500 Decrease in producer surplus = Area of C + F = 5000+2500 = 7500 Deadweight loss = Net loss in social welfare = Area of E + F =((25-15) x (2000-1000)/2) = 5000

Based on the answers calculated here, what we can infer? Consumer surplus = Area of A+B+E =((30-20) x 2000/2) = 10000 Producer surplus = Area of C+D+F =((20-10) x 2000/2) = 10000 New Consumer surplus = Area of A+B+C = 2500+5000+5000 = 12500 Increase in consumer surplus = C - E =5000-2500 = 2500 New producer surplus = Area of D = 2500 Decrease in producer surplus = Area of C + F = 5000+2500 = 7500 Deadweight loss = Net loss in social welfare = Area of E + F =((25-15) x (2000-1000)/2) = 5000

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter11: The Case For Free Markets: The Price System

Section: Chapter Questions

Problem 3TY

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