1. Use Fig 1. If P=$10, calculate consumer surplus? Calculate consumer surplus when P=$8?

Price

FIGURE 1.

$30

$10

$8

100 120 Quantity

2. Use Fig. 2. Calculate producer surplus when P is $10? Calculate producer surplus when P is $18?

FIGURE 2.

Price Supply

$18

$10

$2

10 20 Quantity

3. Use Fig. 3 to fill in the table below.

Price

Figure 3

A Supply

B

C

P1

D E

F

G H

Demand

Q0 Q1 Quantity

At Quantity of Q1 At Quantity of Q0 (at same price of P1) Change

CS

PS

Total Surplus

What happens to total surplus?