Question

ADVANCED ANALYSISGiven the following diagrams:Q1= 15 bags.Q2= 10 bags.Q3= 22 bags. The market equilibrium price is $25 per bag. The price at pointais $70 per bag. The price at pointcis $10 per bag. The price at pointdis $40 per bag. The price at pointeis $20 per bag. The price at pointfis $32 per bag. The price at pointgis $4 per bag. Apply the formula for the area of a triangle (Area = Base Height) to answer the following questions.

Instructions: Round your answers to 1 decimal place.

a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output level Q1 is being produced? $

.

How large is the dollar value of the consumer surplus at the output level Q1? $

.

b. What is the dollar value of the deadweight loss when output level Q2 is being produced? $

.

What is the total surplus when output level Q2 is being produced? $

.

c. What is the dollar value of the deadweight loss when output level Q3 is produced? $

.

What is the dollar value of the total surplus when output level Q3 is produced? $