Question
According to the following Figure, please answer a-f: a)According to this graph, how much is the consumer surplus when price is set at equilibrium (P
According to the following Figure, please answer a-f:
a)According to this graph, how much is the consumer surplus when price is set at equilibrium (P = $8)?
b)According to this graph, how much is the producer surplus when price is equal to its equilibrium level (P=$8)?
c)In the graph, how much is deadweight loss at a price of P =$8 (equilibrium)?
d)Now, according to this graph, how much is the consumer surplus when price is set below the equilibrium level at P=$5?
e)According to this graph, how much is the producer surplus when price is equal at P= $5?
f)In the graph, how much is deadweight loss at a price of $5?
In all cases please show your calculations so I know how to arrive at those numbers!
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