7. Consumer surplus, producer surplus, and deadweight loss with quantity restrictions The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards. Determine the equilibrium price and quantity of computer keyboards. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. 200 180 PRICE (Dollars per computer keyboards) 8 160 140 120 100 80 9 20 0 Demand Supply 0 5 10 15 20 25 30 35 40 QUANTITY (Millions of computer keyboards) 45 60 441 Consumer Surplus Producer Surplus

7. Consumer surplus, producer surplus, and deadweight loss with quantity restrictions The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards. Determine the equilibrium price and quantity of computer keyboards. Based on this, use the green triangle (triangle symbols) to shade the area representing consumer surplus at the equilibrium price. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. 200 180 PRICE (Dollars per computer keyboards) 8 160 140 120 100 80 9 20 0 Demand Supply 0 5 10 15 20 25 30 35 40 QUANTITY (Millions of computer keyboards) 45 60 441 Consumer Surplus Producer 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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