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

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

Problem 2TY

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