4. ADVANCED ANALYSIS Assume the following values for Figures 5.4a and 5.4b . Q 1 5 20 bags. Q 2 5 15 bags. Q 3 5 27 bags. The market equilibrium price is $45 per bag. The price at a is $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 a triangle (Area 5 ½ 3 Base 3 Height) to answer the following questions. LO2

a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level is being produced? How large is the dollar value of the consumer surplus at that output level?

b. What is the dollar value of the deadweight loss when output level Q 2 is being produced? What is the total surplus when output level Q 2 is being produced?

c. What is the dollar value of the deadweight loss when output level Q 3 is produced? What is the dollar value of the total surplus when output level Q 3 is produced?