Q=100-2P and Q=-4+1/2P

Use the same equations.

a)Find the 1) consumer surplus, 2) producer surplus, and 3) total surplus. Draw the surpluses in the demand and supply graphs.

b)Now suppose the government intervenes in the market by adding a price ceiling of $20. Calculate the new 1) consumer surplus, 2) producer surplus, and 3) total surplus. Draw the new surpluses in a new graph.