A pair of sunglasses will typically cost Krista $100, but she has two coupons(which must be used on different pairs): one for $60 off and another for $20 off.

The first pair she buys will bring her $200 of value, the second will bring her

$150, the third $100, and the fourth $50.

a. Calculate the efficient number of sunglasses that Krista should purchase.

b. If, for some reason, Krista were forced to purchase exactly one pair of sunglasses, what would the deadweight loss be?

In the market for boxes of cereal, a tax has been levied. This means that theconsumers will pay the above—equilibrium price of P1 and will buy QT units, and producers will receive P2 and will sell QT units. QT is less than the efficient quantity, and P1 > P2. Graph this market and shade in and label consumer surplus, producer surplus, and deadweight loss.