1. Find the equilibrium, price and quantity, Label consumer surplus, and producer surplus in the graph. Calculate the area of consumer surplus, and producer surplus. P $12 $8 $4 10 20 30 Q 2. If we place a price oor of $6, do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer Surplus, producer surplus, and dead weight loss. P $12 $8 $4 10 20 30 Q 3. If we place a price ceiling of $3, do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. P $12 $8 $4 1. Find the equilibrium, price and quantity, Label consumer surplus, and producer surplus in the graph. Calculate the area of consumer surplus, and producer surplus. ".met, 5 10 Q 1. Equilibrium Price $7, 2. Equilibrium Quantity 5 units 3. CS Label 4. PS Label 5. (Height)97=2x(Width)5/2 (Triangle)=2x5/2= Consumer Surplus = 5 6. (Height)72=5x(Width)5/2 (Triangle)=5x5/2= Producer Surplus = 12.5 Note: 5 +12.5 = 17.5 2. If we place a price oor of $8 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. 9 NP'P'PEBNI" Q 5 10 Quantity Demanded = 2.5; Quantity Supplied = 6. We have a surplus. 6 2.5 = 3.5 is the surplus CS Label PS Label DW Label Quantity sold is 2.5 units (Height) 9 8 =1x (Width) 2.5 / 2 (Triangle) = 1 x 2.5 / 2 = Consumer Surplus = 1.25 Two shapes; Rectangle + Triangle Rectangle Area = (Height) 8 4.5 = 3.5 x (Width) 2.5 = 8.75 Triangle Area= (Height) 4.5 72 = 2.5 x (Width) 2.5 / 2 Triangle = 2.5 x 2.5 /2 = 3.125 Producer Surplus = 11.875 (8.75 + 3.125) (Height) 8 4.5 = 3.5 x (Width) 2.5 / 2 (Triangle) = 3.5 x 2.5 / 2 = Dead Weight = 4.375 Note: 1.25 + 11.875 +4.375 = 17.5 NP'P'FERNI" 3. Ifwe place a price ceiling of $5 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. DW 1 Quantity Demanded = 10; Quantity Supplied = 3. We have a shortage. 10 3 = 7 is the surplus CS Label PS Label DW Label Quantity sold is 3 units Two shapes; Rectangle + Triangle Rectangle Area = (Height) 7.8 7 5 = 2.8 x (Width) 3 = 8.4 Triangle Area= (Height) 9 7.8 = 1.2 x (Width) 3 / 2 Triangle = l x 3 /2 = 1.8 Consumer Surplus = 10.2 (8.4 + 1.8) (Height)572=3x(Width)3/2(Triangle)=3x3/2= Producer Surplus = 4.5 (Height) 7.8 S = 2.8 x (Width) 2 / 2 (Triangle) = 3 x 2 / 2 = Dead Weight = 2.8 Note: 10.2 + 4.5 + 2.8 = 17.5