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Q. Assume the subsequent values for Figures 5.4 also 5.4b, Q1 =20 bags, Q2=15 bags. Q33= 27 bags. The market equilibrium price is $45 per bag. The price at $85 per bag. The price at c is $5 per bag. The price at f is $59 per bag. The price at g is $31 per bag. Apply the formula for the area of the triangle (Area = ½ X Base X Height).
A.) Illustrate what is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocative efficient output level is being produced? Elucidate how large is the dollar value of the consumer surplus at which output level?
b.) Illustrate what is the dollar value of the deadweight loss when output level is being produced? Illustrate what is the total surplus when output level is being produced?
c.) Illustrate what is the dollar value of the deadweight loss when output level is produced? Illustrate what is the dollar value of the total surplus when output level is produced?
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