Answered: 1. For each of the following graphs,…

1. For each of the following graphs, calculate the Consumer Surplus, Producer Surplus and the Total Surplus. a. Graph a b. Graph b Price $2 Demand 50 Supply Quantity Price 2 Supply 50 Demand Quantity

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

Section7.1: Consumer Surplus

Problem 1QQ

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Question

1. For each of the following graphs, calculate the Consumer Surplus, Producer Surplus and the Total Surplus.
a. Graph a
b. Graph b
Price
Demand
50
Supply
Quantity
Price
Supply
50
Demand
Quantity

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Step 1: Define Consumer surplus & Producer surplus

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Step 2: Calculate CS, PS & TS for graph 1

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Step 3: Calculate CS, PS & TS for graph 2

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