Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me. ALL THE STEPS ARE SHOWN. GRAPH BELOW AND QUESTIONS ADVANCED ANALYSIS Given the following diagrams: Q1 = 16 bags, Q2 = 11

Please help me. ALL THE STEPS ARE SHOWN. GRAPH BELOW AND QUESTIONS

image text in transcribedimage text in transcribed
ADVANCED ANALYSIS Given the following diagrams: Q1 = 16 bags, Q2 = 11 bags, Q3 = 23 bags. The market equilibrium price point b is $53 per bag. The price at point a is $85 and the price at point c is $5 per bag. The price at point d is $63 and the price at point e is $38 per bag. The price at point f is $74 and the price at point g is $39 per bag. Apply the formula for the area of a triangle (Area = 1/2 x Base x Height) to answer the following questions. (a) (b) Efficiency loss from underproduction Efficiency loss from overproduction Price (Per Bag) a S Price (Per Bag) a S d D g D Q1 Q1 Q3 Quantity (Bags) Quantity (Bags)a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocationy efficient output Q1 level is being produced? $ How large is the dollar value of the consumer surplus at that output Q1 level? Instructions: Round your answer to one decimal place. $ b. What is the dollar value of the deadweight loss when output level Q2 is being produced? Instructions: Round your answer to one decimal place. $ What is the total surplus when output level Q2 is being produced? Instructions: Round your answer to one decimal place. c. What is the dollar value of the deadweight loss when output level Q3 is produced? Instructions: Round your answer to one decimal place. What is the dollar value of the total surplus when output level Q3 is produced? Instructions: Round your answer to one decimal place. $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Microeconomics 2e By OpenStax

Authors: OpenStax

2nd Edition

1947172344, 978-1947172340

More Books

Students also viewed these Economics questions

Question

=+ (b) affect the world interest rate?

Answered: 1 week ago