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!

help. please help me. assignment due soon. thank you! this is all

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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