4. (20 points) This is a question about figure 2-16 in the textbook. This figure shows...

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4. (20 points) This is a question about figure 2-16 in the textbook. This figure shows areas A (a trapezoid), B (a rectangle), and C, D & E (triangles). Please use those five areas when giving your answers (for example, an answer might be "A+E") (a) Assume the market quantity is QE and the price is PE. Which is the consumer surplus area? Which is the producer surplus area? Which is the social surplus area? (b) Assume the market quantity is QR and the price is PR. Which is the consumer surplus area? Which is the producer surplus area? Which is the social surplus area? (c) Compare the consumer, producer, and social surplus in a) and b) (that is, are each of these going up or down from (QE, PE) to (QR, PR)?). In particular, explain why the social surplus is different and by how much. Price, P W A Consumer surplus D PE E B PR C Y Producer surplus QR QE N Supply Demand Quantity, Q 4. (20 points) This is a question about figure 2-16 in the textbook. This figure shows areas A (a trapezoid), B (a rectangle), and C, D & E (triangles). Please use those five areas when giving your answers (for example, an answer might be "A+E") (a) Assume the market quantity is QE and the price is PE. Which is the consumer surplus area? Which is the producer surplus area? Which is the social surplus area? (b) Assume the market quantity is QR and the price is PR. Which is the consumer surplus area? Which is the producer surplus area? Which is the social surplus area? (c) Compare the consumer, producer, and social surplus in a) and b) (that is, are each of these going up or down from (QE, PE) to (QR, PR)?). In particular, explain why the social surplus is different and by how much. Price, P W A Consumer surplus D PE E B PR C Y Producer surplus QR QE N Supply Demand Quantity, Q