Price ($/Hot Dog) Learning Activity 4 Consider the following graph for Hot Dog market. The government is considering intervening in this market. 3.0 2.0 1564222222222 6.0 5.5 5.0 4.0 3.5 S 1.0 D 0.5 0.0 0 100 200 300 400 500 600 a. Calculate Market Surplus at the equilibrium price and equilibrium quantity in the above graph. Answer: b. If the government restricts the market output to 200 units, calculate, consumer surplus, producer surplus and the deadweight loss using the above graph. Answer: c. If the government imposed a tax of $0.5, show and calculate the effect on consumer surplus, producer surplus and deadweight loss. Answer: