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ADVANCED ANALYSIS Assume the following values for the figures below: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. In Figure (a), the price at point a is $85 per bag. The price at point c is $5 per bag. The price at point d is $55 per bag, and the price at point e is $35 per bag. In Figure (b), the price at point f is $59 per bag. The price at point g is $31 per bag. Values for points a, b, and c are the same as in Figure (a). Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions. a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level Q1 is being produced? $ . How large is the dollar value of the consumer surplus at the output level Q1? $ . b. What is the dollar value of the deadweight loss when output level Q2 is being produced? $ . What is the total surplus when output level Q2 is being produced? $ . c. What is the dollar value of the deadweight loss when output level Q3 is produced? $ . What is the dollar value of the total surplus when output level Q3 is produced? $
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An increase in the number of fast-food restaurants
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