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Here's a quick problem to test whether you really understand what producer surplus and consumer surplus mean, rather than just relying on the geometry of

Here's a quick problem to test whether you really understand what producer surplus and consumer surplus mean, rather than just relying on the geometry of demand and supply. For each of the two diagrams that follow, calculate producer surplus, consumer surplus, and total surplus. Assume the curves are perfectly vertical and perfectly horizontal.

Price Price Demand Supply 12 50 Quantity

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