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In a market for kitchen bags, the highest price consumers are willing to pay is $18 per pack and the lowest price producers are willing
In a market for kitchen bags, the highest price consumers are willing to pay is $18 per pack and the lowest price producers are willing to accept is $8 per pack. The competitive market equilibrium price is $10 per pack, at which 24 million packs are sold. Suppose one company monopolizes the production of kitchen bags. As a result, the price rises to $12 per pack and the quantity sold decreases to 18 million packs. The cost to producers of the last pack sold is $9.50. Assuming that both demand and supply curves are straight lines, the consumer surplus in this market is $ million, the producer surplus is $ A/ million, the total gains from trade are $ A million. A million, and the deadweight loss is $
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