13 12- 11 10- 9- 8 7- 6- Demand Price of beer (S) 69 4. 3-...

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13 12- 11 10- 9- 8 7- 6- Demand Price of beer (S) 69 4. 3- 2 Supply 1- Price Ceiling 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Quantity of beer 4. Refer to the graph of supply and demand for beer. (a) What is the equilibrium price and quantity for beer? (b) What are consumer surplus, producer surplus, and total surplus at equilibrium? 5. Refer to the graph of supply and demand for beer. Suppose a price ceiling of $4 is put into place by the government. (a) With the price ceiling in effect, how much beer is sold? (b) With the price ceiling in effect, what are consumer surplus, producer surplus, and total surplus? (c) What is the deadweight loss due to the price ceiling? = 3500 - 3P QS = 500 +7P 6. This question uses the curves listed above. (a) Using algebra, find the equilibrium price. (b) Substitute the equilibrium price into the Demand equation to find quantity demanded at that price. (c) Substitute the equilibrium price into the Supply equation to find quantity supplied at that price. (d) What is the relationship between the two quantities you just found? 13 12- 11 10- 9- 8 7- 6- Demand Price of beer (S) 69 4. 3- 2 Supply 1- Price Ceiling 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Quantity of beer 4. Refer to the graph of supply and demand for beer. (a) What is the equilibrium price and quantity for beer? (b) What are consumer surplus, producer surplus, and total surplus at equilibrium? 5. Refer to the graph of supply and demand for beer. Suppose a price ceiling of $4 is put into place by the government. (a) With the price ceiling in effect, how much beer is sold? (b) With the price ceiling in effect, what are consumer surplus, producer surplus, and total surplus? (c) What is the deadweight loss due to the price ceiling? = 3500 - 3P QS = 500 +7P 6. This question uses the curves listed above. (a) Using algebra, find the equilibrium price. (b) Substitute the equilibrium price into the Demand equation to find quantity demanded at that price. (c) Substitute the equilibrium price into the Supply equation to find quantity supplied at that price. (d) What is the relationship between the two quantities you just found?