please explain and help me calculate correctly Consider the accompanying supply and demand graph.9-8-What is the value of consumer surplus?7-6-Supply$5-(5, 4.5)4What is the value of producer surplus?3-Demand2-1-$6.QuantityWhat is the value of total (also called social oreconomic) surplus?$Price ($) The Ministry of Misallocation has decreed that the production of widgets must be 5000 each month and the production ofgizmos must be 8000 each month. Calculate the deadweight loss in each market caused by these restrictions. Please notethe scale of the quantity axis is in thousands.Price of widgetsPrice of gizmosS100s109.90SupplySupply880770660550440330DemandDemand2201100 1 2 3 4 5 6 7 8 9 10o 2 4 6 8 10 12 14 16 18 20Quantity of widgets (in thousands)Quantity of gizmos (in thousands)What is the deadweight loss in the widgets market?What is the deadweight loss in the gizmos market?%24

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Consider the accompanying supply and demand graph. 9. 8- What is the value of consumer surplus? 7- 6- Supply $ (5, 4.5) What is the value of producer surplus? Demand 2- $ 6. 8 Quantity What is the value of total (also called social or economic) surplus? $

Consider the accompanying supply and demand graph. 9. 8- What is the value of consumer surplus? 7- 6- Supply $ (5, 4.5) What is the value of producer surplus? Demand 2- $ 6. 8 Quantity What is the value of total (also called social or economic) surplus? $

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency

Problem 3SQP

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8. Total economic surplus The following diagram shows supply and demand in the market for tablets. Use the black point (plus symbol) to indicate the equilibrium price and quantity of tablets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus.
5-2. Consider a market in equilibrium. Suppose demand in this market increases. How will this affect producer surplus? Explain using a graph.
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5-6. Consider the market represented in the figure below. Calculate total surplus when supply is S1. Calculate total surplus when supply increases to S2.
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Question 10 Consumer surplus for a particular unit sold is equal to which of the following? Question 10 options: a) The vertical distance between price and the demand curve. b) The vertical distance between the demand curve and the supply curve. c) The vertical distance between price and the supply curve. d) The vertical distance between the demand curve and the x-axis. e) The vertical distance between the supply curve and the x-axis. Question 11 In a graph, market producer surplus is equal to what area? Question 11 options: a) The area below the demand curve but above price. b) The area between the demand and supply curves. c) The area below the demand curve but above the x-axis.…
Use the following supply and demand equations. Supply:p= 4 + 3q. Demand:p= 2,132−q. Use these equations to respond to the following questions. (a) What is the market equilibrium? (b) Under the market equilibrium, what is Total Surplus? (c) Suppose the government enacts a price ceiling of ̄p= 2,000. What is Producer Surplus, Consumer Surplus, Total Surplus, and Deadweight Loss? (d) Instead, suppose that the government enacts a price ceiling of ̄p= 1,100. What is Producer Surplus, Consumer Surplus, Total Surplus, and Deadweight Loss?
1. The market price is $________ per bottle.2. The equilibrium quantity is ________ bottles.3. The price at which suppliers will not put any bottles on the market is $_______.4. What is the consumers’ surplus in the market at equilibrium $________ (assume the demand curve starts at $38)5. What is the producers’ surplus in this market at equilibrium $_______
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