What does a loss of consumer surplus mean? In the case of exercises 10–12, exactly how do the losses of consumer surplus occur?

Data from in exercise 10

The FDA is considering the adoption of a higher standard of success in clinical trials for any pharmaceutical that the agency will permit to be sold in the United States. Explain how a cost–benefit calculation would be carried out.

Data from in exercise 11

Suppose that in exercise 10, the benefits of the regulation were 1,000 lives saved per year. Would you support adoption of the regulation? Explain.

Data from in exercise 12

Explain what the costs of the regulation are in the scenario in exercises 10 and 11.