Question 18 D.Q,Quantity (bags)Quantity (bags)Instructions: Round your answers to two decimal places.a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level isproduced?24What is the dollar value of the consumer surplus at that output level?b.What is the dollar value of the deadweight loss when output level Q2 is produced?$What is the total surplus when output level Q2 is produced?2$c.What is the dollar value of the deadweight loss when output level Q is produced?$What is the dollar value of the total surplus when output level Q3 is produced?%24 ADVANCED ANALYSIS Assume the following values for the diagrams below: Q = 15 bags. Q2 = 10 bags. Q3 = 22 bags. The marketequilibrium price is $40 per bag. The price at point a is $70 per bag. The price at point c is $10 per bag. The price at point d is $50 perbag. The price at point e is $30 per bag. The price at point fis $54 per bag. The price at point g is $26 per bag. Apply the formula forthe area of a triangle (Area = 2 x Base × Height) to answer the following questions.(a)(b)Efficiency loss from underproductionEfficiency loss from overproductionb.Quantity (bags)Quantity (bags)Instructions: Round your answers to two decimal places.a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level isproduced?Price (per bag)Price (per bag)

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D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What is the dollar value of the consumer surplus at that output level? b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? 2$ c.What is the dollar value of the deadweight loss when output level Q is produced? $ What is the dollar value of the total surplus when output level Q3 is produced? %24

D. Q, Quantity (bags) Quantity (bags) Instructions: Round your answers to two decimal places. a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? 24 What is the dollar value of the consumer surplus at that output level? b.What is the dollar value of the deadweight loss when output level Q2 is produced? $ What is the total surplus when output level Q2 is produced? 2$ c.What is the dollar value of the deadweight loss when output level Q is produced? $ What is the dollar value of the total surplus when output level Q3 is produced? %24

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.12P

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