Let $($inverse$)$ demand be $Pb=112-6Qb$ and $($inverse$)$ supply be $Pv=20+4Qv.$ Consider the PRICE FLOOR $($P$\_$high$)$ depicted, how much CONSUMER SURPLUS is there?

Answer:

Submit

PART II

$(1$ point$)$ Draw by hand the supply and demand graph. Please include all relevant information like the axes labels.

$(1$ point$)$ The market equilibrium price:

$(1$ point$)$ The market equilibrium quantity:

$(1$ point$)$ Shade the area of CS$.$

$(1$ point$)$ Shade the area of PS$.$

$(1$ point$)$ Calculate CS:

$(1$ point$)$ Calculate PS:

$(1$ point$)$ Calculate TS:

PART III

$(1$ point$)$ Draw by hand the graph WITH the PRICE FLOOR. Please include details.

$(1$ point$)$ What is the prevailing price with the PRICE FLOOR:

$(1$ point$)$ At the prevailing price, what is the quantity demanded?

$(1$ point$)$ At the prevailing price, what is the quantity supplied?

$(1$ point$)$ What is the economic issue caused by the PRICE FLOOR?

$(1$ point$)$ Shade the area of CS$.$

$(1$ point$)$ Shade the area of PS$.$

$(1$ point$)$ Calculate CS:

$(1$ point$)$ Calculate PS:

$(1$ point$)$ Calculate TS: $($continued on next page$)$

Note: Each image should appear on a separate page of the document. Please make sure images are large enough to be easily viewed.

PART IV $(2$ points$)$

Paste an image of the SCREENSHOT for PART I below HERE:

PART V $(5$ points$)-$points allocated for detail and appearance.

Paste an image of YOUR DRAWING for PART II below