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Part 4 - Making Connections - Use the graph to identify the transaction quantity (Q) and the areas Q CS PS DWL of consumer surplus
Part 4 - Making Connections - Use the graph to identify the transaction quantity (Q) and the areas Q CS PS DWL of consumer surplus (CS), producer surplus (PS), and deadweight loss (DWL) under the different scenarios. Assume that Q, is the socially optimal 11. A price output. ceiling at P3 Market for Ice Cream P7 Z Supply 12. A price P6...... ceiling at P P X P ........ 13. A price . . ... M floor at at P G . . . . 14. A price P ........ Demand floor at Ps Q1 Q2 Q3 Q4 Qs Quantity Part 5 - More Practice- Assume that a price floor is imposed at $40. Use the graph below to answer the questions. Show your work. 15. How much is the total consumer surplus with the price floor? $50 16. How much is the total producer surplus with $45 the price floor? $40 17. How much is the deadweight loss with the $35 price floor? $30 $25 18. Assume instead that a price ceiling is imposed at $25. How much is the total $20 consumer surplus with the price ceiling? $15 19. How much is the total producer surplus with $10 a price ceiling at $25? $5 D 20. How much is the deadweight loss with a
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