think I did part c incorrect please help and complete with correct answers

2 Market Efficiency Problem 3 Consider the market for corn in the United States. We are going to use Excel to examine changes in consumer and producer surplus in a competitive market when the market is not in equilibrium. 4 Suppose the demand and supply functions for corn are as follows. 5 QD 100 14.5 6 Qs = 0 + 5.5 Where Q is bushels of corn (in billions) and P is the market price per bushel. Using the template provided, enter the coefficients for demand and supply. When the market isn't in equilibrium, only the minimum of QD and Qs values will actually be sold. Once you have this set up, answer the following questions. 17 8 MARKET DEMAND MARKET SUPPLY 9 Coefficients Coefficients 10 Intercept 100 Intercept 11 Price -14.50 Price 5.50 price and quantity?a) Start at a price of $3 per bushel and increase the price to $6 in $.50 increments. What are the equilibrium price and quantity? M Quantity Quantity Price demanded supplied 13 (billions) (billions) 14 $3.00 56.50 16.50 15 $3.50 49.25 19.25 16 $4.00 42.00 22.00 17 $4.50 34.75 24.75 18 $5.00 27.50 27.50 19 $5.50 20.25 30.25 20 $6.00 13.00 33.00 21 Equilibrium price = $5.00 22 Equilibrium quantity = 27.50 billion bushels 23 b) What happens to consumer, producer, and total surplus as you increase the price from $3 to the equilibrium? 24 Start price = $3.00 25 Market quantity 16.50 billion bushels 26 Consumer surplus decreases from $104.41 billion to $26.08 billion. 27 Producer surplus increases from $24.75 billion to $68.75 billion. from $129.16 billion to $94.83 billion. 28 Total surplus decreasesc) Now increase the price from the equilibrium by $.25 two times. What happens to the market quantity, consumer, producer, and total surplus as you 29 increase the price to a level higher than the equilibrium? 30 Price increment = $0.25 Price QD Qs Q CS PS TS 31 (billions) (billions) (billions) (billions) (billions) (billions) 32 $5.00 6.90 23.88 73.52 $19.66 $73.52 $93.18 33 $5.25 $26.08 $68.75 $94.83 34 Consumer surplus increases and producer surplus increases. 35 The market quantity decreases and total surplus increases. 36 d) Explain the effect of changing the price away from the equilibrium on the market efficiency. 37 The further away from the equilibrium, the lower the total surplus in the market meaning the higher the dead-weight loss. 38