In the absence of a price floor, the maximum price that a few of the consumers are willing to pay is up to $100 per barrel of gosum berries The market equilibrium (E) price is $50 per barrel How much consumer surplus is created when there is no price floor Show your calculations Consumer Surplus (1 2) x $(100 50) x 500 250 x $50 $12,500 How much producer surplus when there is no price floor Show your calculations Producer surplus (1 2) x $(50 0) x 500 250 x $50 $12,500 What is the total surplus when there is no price floor Show your calculations Total surplus CS PS $12,500 $12,500 $25,000 After the price floor is instituted, the legal minimum price that can be charged by suppliers is $70 per barrel The maximum price that a few of the consumers are still willing to pay is $100 per barrel of gosum berries With the price floor at $70 per barrel, consumers buy 300 barrels of gosum berries per month How much consumer surplus is created with the price floor Show your calculations After price floor of $70, quantity demanded 300 New consumer surplus (1 2) x $(100 70) x 300 150 x $30 $4,500 After the price floor is instituted, the Chairman of Productions Office buys up any barrels of gosum berries that the producers are not able to sell With the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month How much producer surplus is created with the price floor Show your calculations After price floor of $70, quantity demanded 300 and SP at this quantity $30 New producer surplus (1 2) x $ (70 0) (70 30) x 300 150 x $(70 40) 150 x $110 $16,500 The Chairman of Productions Office buys any barrels of gosum berries that the producers are not able to sell With the price floor, the producers sell 300 barrels per month to consumers but the producers, at this high price floor, produce 700 barrels per month How much money does the chairman of productions office spend on buying up gosum berries Show your calculations Surplus QS QD 700 300 400 surplus Total spent 400 x $70 $28,000 The Emperor of Gondwanaland must collect taxes from the people to pay for the purchases of surplus gosum berries by the Chairman of Productions Office As a result, total surplus (producer plus consumer) is reduced by the amount the Chairman of Productions Office spent on buying surplus gosum berries Using your answers for problems d, e, and f above, what is the total surplus when there is a price floor Show your calculations Consumer Surplus 4 500 Area ( 5)(base)(height) ( 5)(700)(70 0) $24,500 Producer Surplus 24500 Tax amount 28000 NS CS(4500) PS(24,5000 Tax(28,000) $1000 Not correct I dont know where the 24,500 is coming from How does this compare to the total surplus without a price floor from question c above Is it more, or less, and by how much $25,000 1,000 $24,000 Less in surplus Not correct Cant figure out G and H i have the rest correct

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In the absence of a price floor, the maximum price that a few of the consumers are willing to pay is up to $100 per barrel of gosum berries. The market equilibrium (E) price is $50 per barrel. How much consumer surplus is created when there is no price floor? Show your calculations.

Consumer Surplus: (1/2) x $(100 - 50) x 500 = 250 x $50 = $12,500

How much producer surplus when there is no price floor? Show your calculations.

Producer surplus= (1/2) x $(50 - 0) x 500 = 250 x $50 = $12,500

What is the total surplus when there is no price floor? Show your calculations.

Total surplus = CS + PS = $12,500 + $12,500 = $25,000

After the price floor is instituted, the legal minimum price that can be charged by suppliers is $70 per barrel. The maximum price that a few of the consumers are still willing to pay is $100 per barrel of gosum berries. With the price floor at $70 per barrel, consumers buy 300 barrels of gosum berries per month. How much consumer surplus is created with the price floor? Show your calculations.

After price floor of $70, quantity demanded = 300

New consumer surplus = (1/2) x $(100 - 70) x 300 = 150 x $30 = $4,500

After the price floor is instituted, the Chairman of Productions Office buys up any barrels of gosum berries that the producers are not able to sell. With the price floor, the producers sell 300 barrels per month to consumers, but the producers, at this high price floor, produce 700 barrels per month. How much producer surplus is created with the price floor? Show your calculations.

After price floor of $70, quantity demanded = 300 and SP at this quantity = $30.

New producer surplus = (1/2) x $[(70 - 0) + (70 - 30)] x 300 = 150 x $(70 + 40) = 150 x $110 = $16,500

The Chairman of Productions Office buys any barrels of gosum berries that the producers are not able to sell. With the price floor, the producers sell 300 barrels per month to consumers; but the producers, at this high price floor, produce 700 barrels per month. How much money does the chairman of productions office spend on buying up gosum berries? Show your calculations.

Surplus = QS - QD = 700 - 300 = 400 surplus

Total spent = 400 x $70 = $28,000

The Emperor of Gondwanaland must collect taxes from the people to pay for the purchases of surplus gosum berries by the Chairman of Productions Office. As a result, total surplus (producer plus consumer) is reduced by the amount the Chairman of Productions Office spent on buying surplus gosum berries. Using your answers for problems d, e, and f above, what is the total surplus when there is a price floor? Show your calculations.

Consumer Surplus=4.500

Area=(.5)(base)(height)

=(.5)(700)(70-0)

=$24,500

Producer Surplus=24500

Tax amount=28000

NS= CS(4500)+PS(24,5000-Tax(28,000)

= $1000

Not correct. I dont know where the 24,500 is coming from.