Question 4. The graph given below is for the market for a water cooler. 120 110 100 90 80 70 60 50 40 30 20 10 PRICE Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Based on the graph given, calculate the following: (Make sure to show all the steps) a. If the market is at equilibrium, what will be the consumer surplus, producer surplus, and total surplus b. Changes in the producer surplus when the price decreases to $40 per unit. c. Also explain the reasons for those changes (such as if any producers entered or left the market, existing producers' gain or loss). Please calculate the dollar amount of any gain/loss.

Question 4. The graph given below is for the market for a water cooler. 120 110 100 90 80 70 60 50 40 30 20 10 PRICE Supply Demand 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY Based on the graph given, calculate the following: (Make sure to show all the steps) a. If the market is at equilibrium, what will be the consumer surplus, producer surplus, and total surplus b. Changes in the producer surplus when the price decreases to $40 per unit. c. Also explain the reasons for those changes (such as if any producers entered or left the market, existing producers' gain or loss). Please calculate the dollar amount of any gain/loss.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 1CQQ

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