Evaluating the Gains and Losses from Government Policies--Consumer and Producer Surplus. Refer to Figure below. If...

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Evaluating the Gains and Losses from Government Policies--Consumer and Producer Surplus. Refer to Figure below. If the market is in equilibrium, the consumer surplus earned by the buyer of the 1st unit is $ If the market is in equilibrium, the producer surplus earned by the seller of the 1st unit is $ is in equilibrium, total consumer surplus is $ equilibrium, total producer surplus is $ If the market is in If the equilibrium, total consumer and producer surplus is $ government establishes a price ceiling of $20, the number of widgets sold will be FA $80 $70 $60 $50 $40 $30 $ 20 $ 10 10 20 30 40 50 60 70 80 90 . If the market is in Q(Widgets) If the market Suppose the market for widgets can be described by the following equations: Demand: P = 10-Q Supply: P = Q - 4 where P is the price in dollars per unit and Q is the quantity in thousands of units. Then: the equilibrium price is $ and equilibrium quantity is thousand widgets. Suppose the government imposes a tax $1 per unit to reduce widget consumption and raise government revenues. Then, the new equilibrium quantity will be thousand widgets, the new price the buyer pay will be $ and the amount per unit the seller receive will be $ 3 Evaluating the Gains and Losses from Government Policies--Consumer and Producer Surplus. Refer to Figure below. If the market is in equilibrium, the consumer surplus earned by the buyer of the 1st unit is $ If the market is in equilibrium, the producer surplus earned by the seller of the 1st unit is $ is in equilibrium, total consumer surplus is $ equilibrium, total producer surplus is $ If the market is in If the equilibrium, total consumer and producer surplus is $ government establishes a price ceiling of $20, the number of widgets sold will be FA $80 $70 $60 $50 $40 $30 $ 20 $ 10 10 20 30 40 50 60 70 80 90 . If the market is in Q(Widgets) If the market Suppose the market for widgets can be described by the following equations: Demand: P = 10-Q Supply: P = Q - 4 where P is the price in dollars per unit and Q is the quantity in thousands of units. Then: the equilibrium price is $ and equilibrium quantity is thousand widgets. Suppose the government imposes a tax $1 per unit to reduce widget consumption and raise government revenues. Then, the new equilibrium quantity will be thousand widgets, the new price the buyer pay will be $ and the amount per unit the seller receive will be $ 3

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Answer If the market is in equilibrium the consumer surplus earned by the buyer of the 1st unit is 6 and the producer surplus earned by the seller of ... View the full answer