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. 150 Demand 135 Equilibrium 120 105 Consumer Surplus 90 75 Producer Surplus 60 30 15 Supply + 140 175 210 245 280 315 350 35 70 105 QUANTITY (Millions of tablets) million. Total surplus in this market is $ PRICE (Dollars per tablet)
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. 150 Demand 135 Equilibrium 120 105 Consumer Surplus 90 75 Producer Surplus 60 30 15 Supply + 140 175 210 245 280 315 350 35 70 105 QUANTITY (Millions of tablets) million. Total surplus in this market is $ PRICE (Dollars per tablet)
Chapter7: Market Efficiency And Welfare
Section: Chapter Questions
Problem 1P
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Transcribed Image Text: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.
150
Demand
135
Equilibrium
120
105
Consumer Surplus
90
75
Producer Surplus
60
45
30
15
Supply
175
210
245
280
315
350
35
70
105
140
QUANTITY (Millions of tablets)
million.
Total surplus in this market is $
PRICE (Dollars per tablet)
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