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Would Producer surplus in the case of gov buying excess supply be equal to b+d+f or b+d+f+c+e+g? f1. Given the following demand and supply equations,

Would Producer surplus in the case of gov buying excess supply be equal to b+d+f or b+d+f+c+e+g?

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\f1. Given the following demand and supply equations, solve the perfectly competitive model; Graph and Find p*, q*, CS, PS, and DWL QD = 50 - 5P Qs = 17.5P-17.5 2. Now, suppose there is a price floor pf = 4 a. If the government imposes the floor but does not have any other regulation or rationing what quantity will be purchased by consumers? What quantity will firms produce? Graph and Find CS, PSshort run, PSlong run, DWLbest and DWLworst b. Instead suppose the government imposes the floor and then agrees to buy any excess supply from producers at the price floor amount. What quantity will be purchased by consumers? What quantity will firms produce? Graph and Find CSbest and CSworst, GS, PS, DWLbest and DWLworst

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