What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced?      $       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?      $  c.What is the dollar value of the deadweight loss when output level Q3 is produced?      $       What is the dollar value of the total surplus when output level Q3 is produced?      $

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 17SQ
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ADVANCED ANALYSIS Assume the following values for the diagrams below: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 bags. The market equilibrium price is $53 per bag. The price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $63 per bag. The price at point e is $38 per bag. The price at point f is $74 per bag. The price at point g is $39 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions.

 

 

 

a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced?

     $ 

     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?

     $ 

c.What is the dollar value of the deadweight loss when output level Q3 is produced?

     $ 

     What is the dollar value of the total surplus when output level Q3 is produced?

     $ 

Price (per bag)
C
(a)
Efficiency loss from underproduction
d
$
D
Quantity (bags)
Instructions: Round your answers to two decimal places.
Price (per bag)
C
(b)
Efficiency loss from overproduction
f
9
93
Quantity (bags)
$
D
Transcribed Image Text:Price (per bag) C (a) Efficiency loss from underproduction d $ D Quantity (bags) Instructions: Round your answers to two decimal places. Price (per bag) C (b) Efficiency loss from overproduction f 9 93 Quantity (bags) $ D
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