Question: help. please help me. assignment due soon. thank you! this is all the info given to me! 4. Price support and producer surplus for 4
help. please help me. assignment due soon. thank you! this is all the info given to me!

4. Price support and producer surplus for 4 points. Demand and supply are defined by P = 6-d and P=QS, respectively. Suppose that the government offers a price support to the sellers so that the producer surplus is equal to 8 dollars, i.e., PS* = 8. In a market equilibrium with government intervention, a. what is the quantity traded, Q**? In other words, what is the quantity sold under a price support such that the producer surplus is equal to 8 dollars? (1 point) b. what is the government surplus, GS**? (1 point) c. what is the consumer surplus, CS**? (1 point) d. what is deadweight loss, DWL**? (1 point) 2 A graph is not required, but might be useful to figure out what the market equilibrium with government intervention is. 6 4. Price support and producer surplus for 4 points. Demand and supply are defined by P = 6-d and P=QS, respectively. Suppose that the government offers a price support to the sellers so that the producer surplus is equal to 8 dollars, i.e., PS* = 8. In a market equilibrium with government intervention, a. what is the quantity traded, Q**? In other words, what is the quantity sold under a price support such that the producer surplus is equal to 8 dollars? (1 point) b. what is the government surplus, GS**? (1 point) c. what is the consumer surplus, CS**? (1 point) d. what is deadweight loss, DWL**? (1 point) 2 A graph is not required, but might be useful to figure out what the market equilibrium with government intervention is. 6
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