Consider the market represented in Figure 5P-5. a. Draw the consumer surplus and producer surplus if the

Question:

Consider the market represented in Figure 5P-5.
a. Draw the consumer surplus and producer surplus if the market is functioning at the equilibrium price and quantity. Compute the total surplus if the market is functioning at the equilibrium price and quantity.
b. Compute the consumer surplus and producer surplus if the price is $30.
c. Compute the consumer surplus and producer surplus if the price is $10.