1. Suppose that, instead, a price ceiling of Pc = 10 is imposed by the government Find the equilibrium quantity with the price ceiling. Then calculate consumer surplus, producer surplus, and deadweight loss at the regulated equilibrium. 30-016 Q ya-33 3 67 0.4Q - 33 Qc = 10= %3D 10 Q =10 CSc = 6Q PSc = (33'3). DWLC = 30-06Q 2o 6 t0.40 Price Controls: CS, PS, and Deadweight Loss supply 30 US DWL Cs PC 10 PS Demand

1. Suppose that, instead, a price ceiling of Pc = 10 is imposed by the government Find the equilibrium quantity with the price ceiling. Then calculate consumer surplus, producer surplus, and deadweight loss at the regulated equilibrium. 30-016 Q ya-33 3 67 0.4Q - 33 Qc = 10= %3D 10 Q =10 CSc = 6Q PSc = (33'3). DWLC = 30-06Q 2o 6 t0.40 Price Controls: CS, PS, and Deadweight Loss supply 30 US DWL Cs PC 10 PS Demand

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Could I have help with calculating values of consumer surplus producer cost and dead weight lost

d. Suppose that, instead, a price ceiling of Pc = 10 is imposed by the government
Find the equilibrium quantity with the price ceiling. Then calculate consumer
surplus, producer surplus, and deadweight loss at the regulated equilibrium.
1o 30-016 Q ya 33 3
10 67 0.4Q->
334
Qc =
%3D
CSc =
(33 5)
PSc =
DWLC =
30-06Q
20
6 t0.4Q
Price Controls: CS, PS, and Deadweight Loss
s upply
30
US
DWL
cs
PC
10
PS
니.
bemand
24

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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