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The market demand function for wheat is =202, and the market supply function is =44, both quantities are measured in billions of bushels per year.
The market demand function for wheat is =202, and the market supply function is =44, both quantities are measured in billions of bushels per year.
- a. What are the aggregate surplus, consumer surplus, and producer surplus at the competitive equilibrium?
- b. If only 6 billion bushels are bought and sold in a year, with the consumer who the highest willingness to pay buying them and the firms which have the lowest avoidable cost selling them, what are the aggregate surplus, consumer surplus, and producer surplus? How large is the deadweight loss?
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