Calculate the reduction in the consumers surplus

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Reference no: EM131006400

Using the diagram, suppose that producers need to have licenses to sell apples, and that only 90 units of apples are licensed (i.e. Q is limited to 90). Calculate:

a. the reduction in the consumers’ surplus

b. the reduction in the producers’ surplus

c. How much does total surplus fall? (Aside: To solve “6a” it might be easiest to find an equation for P =a +bQd and to solve for “6b”, find an equation for P =a +bQs )

Reference no: EM131006400

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