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Assume that the market is free and perfectly competitive. Price equilibrium (1) = 84, Quantity equilibrium (1) = 89. New Price equilibrium (2) = 75.6,

Assume that the market is free and perfectly competitive.

Price equilibrium (1) = 84, Quantity equilibrium (1) = 89.

New Price equilibrium (2) = 75.6, Quantity equilibrium (2) = 97

Equilibrium (1) New equilibrium (2)
Consumer surplus (CS) 3738.00 4523.08
Producer surplus (PS) 2429.70 2261.54
Total surplus (TS) 6167.70 6784.62

Please calculate the change in total surplus (TS) and explain why total surplus changes and what this change represents?

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