Suppose aggregate demand is perfectly elastic and equal to 830 ?MW. ?Illustrate the equilibrium in the same diagram you made in part c). ?Show the equilibrium price and quantity. Be sure to label all parts of your diagram.

(5 ?marks)

e. ?Make a table that reports the revenue earned by each generator. Compute aggregate

revenue.

(2 ?marks)

f. ?Compute producer surplus. Explain why producer surplus and the aggregate revenue

computed in part e) ?are different.

(5 ?marks)

g. ?Generator 4 ?is a wind turbine. Suppose that the available wind was not sufficient to produce the electricity the generator bid into the market. Compute the new if generator 4 ?cannot be dispatched. Illustrate the changes in the market and explain the changes to the equilibrium quantity and price.

(8 ?marks)

h. ?Do the generators that supply the market benefit from the lack of wind? You must support

your answer with evidence.

Excel File Edit View Insert Format Tools Data Window Help ? )47% Thu 8:04 pm Q DE x Bids Q Search Sheet Home Insert Page Layout Formulas Data Review View + Share Cut Calibri (Body) * 11 A- A So Wrap Text Copy General 14#1 _ AutoSum . Ag. Paste Fill Format BI UTY . A |Merge & Center $ ~ % 2 30 -00 Conditional Format Cell Insert Delete Format Clear Sort & Formatting as Table Styles Filter Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for Updates Check for Updates E18 4 X V fx B D E G H K M N O P Q R S T Generator 1 Generator 2 Generator 3 Generator 4 Generator 5 Price (Y) Quantity Supply schedule ( MWh) Price Quantity Supply schedule ( MWh) Price Quantity Supply schedule ( MWh|Price -1000 100 500 Quantity Supply schedule ( MWh) Price Quantity Supply schedule ( MWh) 100 500 500 -1000 -1000 100 0 100 100 0 500 -100 50 100 20 120 50 50 50 100 500 75 50 100 300 400 120 120 100 500 500 20 100 330 200 120 100 150 500 500 60 40 250 30 40 150 200 500 200 o 100 370 500 500 200 150 250 230 220 100 460 500 500 550 300 100 700 150 300 100 500 600 300 700 100 100 600 100 006 250 100 500 500 600 330 1000 250 700 100 950 100 500 700 400 100 1000 100 1600 30 530 3500 -50 Generator 1 Quantity (X) -Price [Y) 18 100 1000 Price (Y) 19 100 0! 120 1500 100 1201 120 1000 120 200! 150! 250 500 1501 500 150 5501 50 150 250! 200 700 250 300 -500 2501 .1000! -1000 -Price (Y) -1500 Quantity(x) Generator 4 Quantity (X) Price (Y) Price (Y) 0 o 50 1200 Sheet1 + Select destination and press ENTER or choose Paste - + 100% APR 25