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Consider demand and supply functions |'-]' p=rm3=a() and p=ytqi=q+ a} Check the equilibrium quantitzlr q = 3 and equilibrium price p' = 1. The consumer
Consider demand and supply functions |'-]' p=rm3=a() and p=ytqi=q+ a} Check the equilibrium quantitzlr q" = 3 and equilibrium price p' = 1. The consumer surplus and the producer surplus can be determined at the equilibrium point. Their sum equals the total surplus. When the production quantity is below the equilibrium, the total surplus is reduced. This reduction is the deadweight loss. b} Determine the deadweight loss at a = 1. c} Show-lI that the integral THESE? six is convergent and determine its Iiralue
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