2. Working with Numbers and Graphs Q2 The following graph shows a demand curve (in blue) and a supply curve (in orange). Suppose a price ceiling of 16 per unit is imposed. Use the green points (triangle symbols) to shade the area representing producers' surplus after the price ceiling. Then use the purple points (diamond symbols) to shade the area representing consumers' surplus after the price ceiling. 27 21 4 6 W 10 12 QUANTITY 14 16 Supply Producers Surplus Consumers Surplus

2. Working with Numbers and Graphs Q2 The following graph shows a demand curve (in blue) and a supply curve (in orange). Suppose a price ceiling of 16 per unit is imposed. Use the green points (triangle symbols) to shade the area representing producers' surplus after the price ceiling. Then use the purple points (diamond symbols) to shade the area representing consumers' surplus after the price ceiling. 27 21 4 6 W 10 12 QUANTITY 14 16 Supply Producers Surplus Consumers Surplus

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Here is the demand for coconuts: P 3 4 5 6 7 8 9 11 13 16 20 QD 1100 1000 900 800 700 600 500 400 300 200 100 And here is supply P 3 4 5 6 7 8 9 10 11 12 13 QS 100 200 300 400 500 600 700 800 900 1000 1100 Identify the equilibrium price, quantity, consumer and producer surplus and show them on a graph. The graph should be pretty simple here, the main issue is finding the numbers for consumer and producer surplus. Again, let me reiterate: I WANT NUMBERS FOR CONSUMER AND PRODUCER SURPLUS! Furthermore, I want you to do this the way that I do. In other words, calculate it like it's a bunch of…