The following graph shows market for cell phone servicesat equilibrium.

A) Calculate Consumer surplus. (2 points)

B) Calculate producer surplus(2 points)

C) Calcualte total Surplus.(2 points)

D) Suppose in response to public outcry the government imposed a price ceiling of $35 in this market. Explain the impact on the total surplus and market efficiency. (4 points)

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T Price 85 + 80 Supply 70 + 65 60 + - - - 55 + 50 + 45 40 35 + - - 30 + 25 +- 20 + 15 10 + 5 Demand + + 1 2 3 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Quantity