A Vietnamese coffee producer is reconsidering his/her growing operation. With your knowledge on consumer and producer surplus, you have been asked to evaluate their operations. Accordingly, you have been given the following

Ps(Q) = 10 + Q2 (1) Pd(Q) = 210 Q2 (2)

Where:

Ps(Q) is the supply price

Pd(Q) is there demand price

1. (a)Find the consumer surplus, producer surplus, and total social gain at market equilibrium.
2. (b)If the coffee producers can form a cartel and restrict the available quantity to 5, selling at the demand price for 5 (for a price of 185), what are the consumer surplus, producer surplus, and total social gain?
3. (c)Interpret the value of total social gain calculated from (a) and (b).