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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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please draw the social cost line Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Consider the supply of soybeans in South America and the demand for soybeans in China. Draw a graph in which you show the current market equilibrium price of soybeans and quantity of soybeans traded. Include the curve that shows the true social costs of soybean production. Show the socially optimal amount of soybeans traded. Show the price that should really be charged for soybeans to ensure that production moves to the socially optimal level. Ensure that you label your graph correctly (all curves, axes, prices and quantities labeled). Show the deadweight loss of soybean production. What intervention could be used to change the market price for soybeans to the level that would move the quantity of soybeans traded to the optimal level? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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