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Solve clearly Sugar Market 30 Duy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

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Sugar Market 30 Duy 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 34 34 [5 1/2( 54-34 ) (11-0) =121 PS 1 12 ( 34-1 ) ( 1 - 0 ) = 181.5 = 302 .5 1. Calculate the following: a. Consumer Surplus 1/2( 40-30) (13-11)=10 b. Producer Surplus 181 5 C. Total Surplus 302.S2. Now suppose you have a $10 subsidy on sugar. a. Consumer Surplus 1/2 ( 56 - 30 ) ( 13-0) = 149 169 b. Producer Surplus 1/2 (90 - 1) ( 13 - 0) = 253 5 $253. 5 C. Government Expenditure #130 10 * 13 = d. Total Surplus $ 292 5 169+253.5-130 Pos e. Dead-weight Loss TO - To = dud 10 R 1/2 ( 40.30 ) ( 13-11 )

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