Use the chart in first picture to answer question 10 D about “what is the total surplus of price ceiling?” aferencesMailingsRevA Aa AAaBbCcl AaBbCcI AaBbC AaB AaBbr1 Normal1 No Spac. Heading 1TitleSubtinA 2.A-ParagraphStyles9. Toasters again! The demand and supply schedule for toasters, is given below.a. Graph the supply and demand curves to scale and identify the areas that representthe consumer surplus and producer surplusQsPDF($)(millions)(millions)Homework 4Question 9.pdf12010100102080203060304040405020506060b. What are the equilibrium quantity and price?Qe = 40P.= S40c. Calculate consumer surplus, producer surplus and total surplus.D Focus%23hpfaf10144 三 AAaBbCcl AaBbCCI AaBbC AaB Aa1 NormalT No Spac... Heading 1Title-A-ParagraphStylesConsumer Surplus- *40* (60-40) = $400Producers Surplus- 2*40 (40-0) = $800Total Surplus = $400 + $800 = $120010. Toasters last time! With the same data as the last problem. What happens ifgovernment imposes a price ceiling of $30.a. How many toasters will be sold?b. What is consumer surplus with price ceiling?c. What is producer surplus with price ceiling?d. What is the total surplus with price ceiling?30MILLION$675MILLION$450MILLIONe. How did the price ceiling change the total surplus compared to freemarket equilibrium of #9?It changed by decreasing by $75 when the government imposes a price ceiling.D Focuhp

The total surplus is the total welfare in the economy which is the sum of consumer and producer…

10. Toasters last time! With the same data as the last problem. What happens if government imposes a price ceiling of $30. a. How many toasters will be sold? b. What is consumer surplus with price ceiling? c. What is producer surplus with price ceiling? d. What is the total surplus with price ceiling? 30 MILLION $675 MILLION $450 MILLION e. How did the price ceiling change the total surplus compared to free market equilibrium of #9? It changed by decreasing by $75 when the government imposes a price ceiling.

10. Toasters last time! With the same data as the last problem. What happens if government imposes a price ceiling of $30. a. How many toasters will be sold? b. What is consumer surplus with price ceiling? c. What is producer surplus with price ceiling? d. What is the total surplus with price ceiling? 30 MILLION $675 MILLION $450 MILLION e. How did the price ceiling change the total surplus compared to free market equilibrium of #9? It changed by decreasing by $75 when the government imposes a price ceiling.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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