The supply and demand curves of a product are shown in Figure 6.13. Approximate the difference in the total gains from trade if the price is artificially increased from the equilibrium price of p* = 95 to p*= 110. p (Slunit) 200 180 160 140 120 100 80 60 40 20 50 100 O (a) $137.50 O (b) $3,250 O (c) $4,675 O (d) $4,750 (e) $7862.50 O (f) $8000 [$t 150 200 Figure 6.13 q (quantity)

The supply and demand curves of a product are shown in Figure 6.13. Approximate the difference in the total gains from trade if the price is artificially increased from the equilibrium price of p* = 95 to p*= 110. p (Slunit) 200 180 160 140 120 100 80 60 40 20 50 100 O (a) $137.50 O (b) $3,250 O (c) $4,675 O (d) $4,750 (e) $7862.50 O (f) $8000 [$t 150 200 Figure 6.13 q (quantity)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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