3.1 Use the following diagram to calculate total consumer surplus at a price of $12 and production of 500,000 flu vac- cinations per day. For the same equilibrium, calculate total producer surplus. Assuming the price remained at $12, but production was cut to 200,000 vaccinations per day, calcu- late producer surplus and consumer surplus. Calculate the deadweight loss from underproduction. Price per vaccination ($) 24 20 16 12 8 4 D 0 100 200 300 400 500 600 700 800 900 Th S

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3.1 Use the following diagram to calculate total consumer
surplus at a price of $12 and production of 500,000 flu vac-
cinations per day. For the same equilibrium, calculate total
es producer surplus. Assuming the price remained at $12, but
production was cut to 200,000 vaccinations per day, calcu-
late producer surplus and consumer surplus. Calculate the
deadweight loss from underproduction.
T
11
Price per vaccination ($)
24
20
16
12
8
4
31
D
1
0 100 200 300 400 500 600 700 800 900
Thousands of vaccinations per day
S
Transcribed Image Text:3.1 Use the following diagram to calculate total consumer surplus at a price of $12 and production of 500,000 flu vac- cinations per day. For the same equilibrium, calculate total es producer surplus. Assuming the price remained at $12, but production was cut to 200,000 vaccinations per day, calcu- late producer surplus and consumer surplus. Calculate the deadweight loss from underproduction. T 11 Price per vaccination ($) 24 20 16 12 8 4 31 D 1 0 100 200 300 400 500 600 700 800 900 Thousands of vaccinations per day S
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