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Explain the concepts of producer and consumer surplus. a. Given an increase in demand, what happens to total surplus value in society? Show both graphically

Explain the concepts of producer and consumer surplus.

a. Given an increase in demand, what happens to total surplus value in society? Show both graphically and in words.

b. If government were to impose a tax on the supply side of a perfectly competitive industry, what will happen to surplus value and why will there be a dead weight loss to society assuming no externalities in the market?

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