Consider the market represented in Figure 5P-7. a. Draw the consumer surplus and the producer surplus at
Question:
a. Draw the consumer surplus and the producer surplus at the equilibrium price and quantity. What is the value of total surplus at equilibrium?
b. Draw the consumer surplus and the producer surplus if the price is $30. What are the values of consumer surplus, producer surplus, and total surplus at this price?
c. Draw the consumer surplus and the producer surplus if the price is $10. What are the values of consumer surplus, producer surplus, and total surplus at this price?
Figure 5P-7:
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a Total surplus 050404 80 b Consumer surplus 05040 302 ...View the full answer
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